LONDON: Oriole Resources PLC has secured a controlling position in Reservoir Minerals Cameroon Sarl (RMC Sarl), a former subsidiary of Bureau d’Etudes et d’Investigations Géologico-minières, Géotechniques et Géophysiques SARL (‘BEIG3’), for its early-stage exploration licences in Cameroon.
Following completion of an initial funding commitment of US$1.56 million over two years at the Bibemi and Wapouzé projects in northern Cameroon, the Company has now formalised its 51% ownership of the local holding company, RMC Sarl, that also holds three of the newly-granted licences in central Cameroon (announcement dated 3 February 2021).
Completion of the drilling programme at Bibemi is expected to see the Company meet its second expenditure commitment to acquire a 90% interest in all five licences.
Oriole Resources CEO, Tim Livesey, said: “The transfer of ownership of 51% of RMC Cameroon SARL is another key milestone for Oriole, with the final increase to 90% ownership expected at the end of this initial drill programme.
“With controlling interest in a total of ten licences at varying stages of exploration (held between RMC Cameroon SARL and our 90%-owned subsidiary Oriole Cameroon SARL), including a significant footprint in Central Cameroon, giving us a total land package of almost 4,000km2, we are well placed as first movers in this new frontier for gold exploration.”
Under the terms of an Option Agreement signed in June 2018, the Company recently completed US$1.56 million of exploration funding at BEIG3’s Bibemi and Wapouzé gold projects in return for an initial 51% interest (announcement dated 12 June 2018). The Company today reports that is has formalised its majority ownership of the projects through the acquisition of a 51% interest in the local holding company RMC Sarl, a former wholly-owned subsidiary of BEIG3.
At the more advanced Bibemi project, a maiden drilling programme is currently underway for a planned 3,080 metres (‘m’) in 28 holes. Recently reported results for the first hole have confirmed the continuity of the orogenic gold system to more than 90m below surface, with a best intersection of 1m grading 4.09 grammes per tonne (‘g/t’) gold (‘Au’) (announcement dated 31 March 2021). Further results from the programme are expected throughout Q2-2021. At the Wapouzé project, located 20 kilometres (‘km’) to the north, a recent 150m pilot trenching programme across of portion of the 8km-long gold-in-soil anomaly has not returned any significant intersections. The team is currently reviewing all data, including what it is seeing in the drill core at Bibemi, ahead of potential follow-up work later in the year.
The Company has also acquired, at no additional cost, a 51% interest in RMC Sarl’s recently-granted Mana, Dogon and Sanga licences in central Cameroon (announcement dated 3 February 2021). These licences, together with the five licences held through the Company’s 90%-owned local subsidiary, Oriole Cameroon Sarl, are part of a contiguous, district-scale land package that covers 3,592km2 of highly prospective geological terrane. An orientation study has recently been completed at the licences ahead of a package-wide mapping and stream sediment sampling programme, planned to commence later this quarter.
Completion of the drilling programme at Bibemi is expected to see the Company meets its second commitment (a further US$1.56 million) to earn a 90% interest in all five licences, after which BEIG3 will have a 10% free-carried interest in each of the licences up until the definition of a minimum Measured and Indicated resource of 50,000 ounces of gold with Oriole having the remaining beneficial interest. Thereafter, funding will be pro-rata on a contribute or dilute basis.
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