Teranga Gold Increases Ownership in Golden Hill and Gourma Projects to 100%
October 02 2018 - 7:33AM
Teranga Gold Corporation ("Teranga" or the "Company") (TSX:TGZ;
OTCQX:TGCDF) is pleased to announce that it is acquiring the
remaining 49% interest in the Golden Hill and Gourma projects from
Boss Resources Limited (“Boss”) (ASX:BOE) for a total of AUD10
million.
Teranga previously had the right to increase its
51% stake and earn up to an 80% interest in each project upon
delivery of a feasibility study on either project and the payment
of AUD2.5 million. With this transaction, Teranga will own a 100%
interest in each of the Golden Hill and Gourma projects, located in
Burkina Faso, West Africa.
“We are pleased to increase our ownership
interest in Golden Hill to 100%. It is one of West Africa’s most
exciting exploration projects as well as an important part of our
vision of becoming a multi-asset, mid-tier gold producer,” said
Richard Young, President and Chief Executive Officer. “Drill
results released since early last year give us confidence that
Golden Hill could be Teranga’s third gold mine.”
The Golden Hill property is comprised of three
adjacent exploration permits covering 470 km2 in the central part
of the Houndé Greenstone Belt in southwestern Burkina Faso. This
highly prospective belt hosts a number of high-grade gold
discoveries, including the Siou, Yaramoko and Houndé deposits, the
latter which is contiguous with Golden Hill.
In less than two years, nearly 70,000 metres
have been drilled at Golden Hill, revealing a series of high-grade,
near-surface and deeper drill results at nine prospects, each
located within 7.5 km of a central point. Preliminary
metallurgical test work programs are underway with base line
environmental studies to follow later this year.
The Company plans to release an initial resource
estimate in January 2019 for the most advanced of Golden Hill’s
nine prospects. The cut-off for this estimate will be the end
of October 2018, however, drilling at Golden Hill will continue
unabated throughout the fourth quarter and 2019 as the Company
continues to explore this area of the prolific Houndé belt.
Cumulative drill results from all Golden Hill drilling are
available on the Company’s website at www.terangagold.com under
Exploration.
The Gourma property is at an earlier stage of
exploration and consists of six contiguous exploration permits
covering a total area of approximately 1,300 km2 in eastern Burkina
Faso.
The sale agreement is anticipated to close in
approximately three business days pending satisfaction of
conditions precedent.
Forward-Looking Statements
This press release contains certain statements
that constitute forward-looking information within the meaning of
applicable securities laws ("forward-looking statements"), which
reflects management's expectations regarding Teranga's future
growth and business prospects (including the timing and development
of new deposits and the success of exploration activities) and
opportunities. Wherever possible, words such as “objective to”,
“likely”, “intend to”, “potential”, “belief”, “believe”, “expects”,
“estimates”, “plans”, “anticipated”, “ability” and similar
expressions or statements that certain actions, events or results
“should”, or "will" have been used to identify such forward-looking
information. Forward-looking statements include, without
limitation, all disclosure regarding possible events, conditions or
results of operations, future economic conditions and anticipated
courses of action. Although the forward-looking statements
contained in this press release reflect management's current
beliefs based upon information currently available to management
and based upon what management believes to be reasonable
assumptions, Teranga cannot be certain that actual results will be
consistent with such forward-looking statements. Such
forward-looking statements are based upon assumptions, opinions and
analysis made by management in light of its experience, current
conditions and its expectations of future developments that
management believe to be reasonable and relevant but that may prove
to be incorrect. These assumptions include, among other things, the
ability to obtain any requisite governmental approvals, the
accuracy of sampling, analytical and test data underlying the
exploration results included herein, gold price, exchange rates,
fuel and energy costs, future economic conditions, and anticipated
future estimates of free cash flow. Teranga cautions you not to
place undue reliance upon any such forward-looking statements.
The risks and uncertainties that may affect
forward-looking statements include, among others: the inherent
risks involved in exploration and development of mineral
properties, including government approvals and permitting, changes
in economic conditions, changes in the worldwide price of gold and
other key inputs, changes in mine plans and other factors, such as
project execution delays, many of which are beyond the control of
Teranga, as well as other risks and uncertainties which are more
fully described in Teranga's Annual Information Form
dated March 29, 2018, and in other filings of Teranga with
securities and regulatory authorities which are available
at www.sedar.com. Teranga does not undertake any obligation to
update forward-looking statements should assumptions related to
these plans, estimates, projections, beliefs and opinions change.
Nothing in this document should be construed as either an offer to
sell or a solicitation to buy or sell Teranga securities. All
references to Teranga include its subsidiaries unless the context
requires otherwise.
About Teranga
Teranga is a multi-jurisdictional West African
gold company focused on production and development as well as the
exploration of more than 6,400 km2 of land located on prospective
gold belts. Since its initial public offering in 2010,
Teranga has produced more than 1.5 million ounces of gold from its
operations in Senegal, which as of June 30, 2018 had a reserve base
of 2.5 million ounces of gold. Focused on diversification and
growth, the Company is advancing its Wahgnion Gold Project in
Burkina Faso towards delivering its second producing gold mine, as
well as carrying out exploration programs in three West African
countries: Burkina Faso, Côte d’Ivoire and Senegal. The
Company has 4.1 million ounces of gold reserves from its combined
Sabodala Gold operations and Wahgnion Gold Project as of June 30,
2018. Teranga applies a rigorous capital allocation framework
for its investment decisions to execute on its growth strategy
relying on a combination of cash on the balance sheet, free cash
flow from operations and debt.
Steadfast in its commitment to set the benchmark
for responsible mining, Teranga operates in accordance with the
highest international standards and aims to act as a catalyst for
sustainable economic, environmental, and community development as
it strives to create value for all of its stakeholders.
Teranga is a member of the United Nations Global Compact and a
leading member of the multi-stakeholder group responsible for the
submission of the first Senegalese Extractive Industries
Transparency Initiative revenue report.
Contact Information
Richard
Young |
Trish Moran |
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President &
CEO |
Head of Investor
Relations |
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T: +1 416 594 0000 | E:
ryoung@terangagold.com |
T: +1 416 607 4507 | E:
tmoran@terangagold.com |
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