TIDMORR
RNS Number : 9057T
Oriole Resources PLC
20 November 2023
Oriole Resources PLC
('Oriole Resources' or 'the Company' or 'the Group')
Heads of Terms on the Bibemi Project, Cameroon
Oriole Resources (AIM: ORR), the AIM-quoted exploration company
focussed on West Africa, is delighted to report that it has signed
a non-binding Heads of Terms ('HoT') with Ghana-based BCM
International Limited ('BCM'), a well-respected mining and civil
contractor, for an earn-in by BCM ('Earn-in Agreement') to
fast-track development of the Company's 92.2%-owned Bibemi gold
project ('Bibemi' or 'the Project') in northern Cameroon. Following
the signature of the HoT, the conditional Earn-in Agreement is
expected to be executed before the end of this year.
Highlights
-- Non-binding HoT signed with BCM to enter into the Earn-In
Agreement whereby BCM will earn up to a 50% interest in Bibemi in
return for the following staged commitments:
o Following execution of the Earn-In Agreement, BCM will make a
US$500k cash payment to Oriole ('Signature Payment') on or before
31 December 2023;
o BCM will commit to US$4m in exploration expenditure, a large
component of which will be to undertake resource-expansion drilling
at the Project;
o Further success-based payments from BCM to Oriole, the level
of which is subject to the number of resource ounces reported under
JORC.
-- Subject to execution of the Earn-In Agreement, it is
anticipated that drilling will resume at the project in Q1-2024. In
the meantime, the Company is continuing to progress various
technical studies to support the application for an exploitation
licence in 2024;
-- Beyond these commitments, any further expenditure at Bibemi
will be on a contribute or dilute basis. In the event that Oriole's
percentage holding in Bibemi falls below 5%, then its interest will
convert to a 3% net smelter returns ('NSR') royalty on future
production at the Project;
-- Drilling will be provided by BCM, under a separate contract,
at cost plus 10% on an open book basis;
-- Oriole will continue to manage the technical programmes and
will provide its geological and administrative teams to BCM, under
a separate contract, at cost plus 10%;
-- Following signature of the HoT, Oriole has received a
non-refundable payment of US$50k (the 'Advanced Payment'), which
shall be set off against the Signature Payment;
-- The Earn-In Agreement is currently being drafted and is
expected to be executed before the end of 2023 subject to the
satisfaction of certain conditions precedent.
-- The Company will provide a further announcement upon execution of the Earn-In Agreement.
Oriole Resources CEO, Tim Livesey , said: "Following the great
success in our exploration programmes to date, we are delighted to
welcome BCM as incoming partners on the Bibemi project, where in
late 2022 we delivered Cameroon's first ever JORC-classified gold
resource.
"We are pleased that the value proposition has been recognised
and we look forward to working with BCM to enlarge and upgrade the
maiden resource at Bakassi Zone 1 as well as identifying additional
resources within the wider Bibemi licence.
"BCM brings decades of experience in the West African mining
scene and has a highly competent management team and skilled
workforce, with extensive experience in mine construction and
operations support.
"In addition to the upfront cash component, the structure of the
deal sees a significant inflow of direct investment into resource
development which will help fast-track our pathway to development.
Whilst Oriole will be the operators of the early works, BCM will
supply equipment and drilling capacity, with both parties working
on an open book system as true partners in the venture.
"Success-based payments on resource addition have also been
included in the deal, to ensure exposure to the exploration upside
at the Project and to give Oriole the potential for additional cash
payments as the joint venture progresses.
"We have always believed that Bibemi has the capacity to become
a model for gold mine development in Cameroon and the addition of
funding and project development capabilities from our new partners
will help us move towards that goal.
"I would like to thank our shareholders for their patience;
negotiating earn-in agreements in a new jurisdiction can be time
consuming and we have been conscious of the need to move quickly
and yet still deliver an equitable investment structure. I am very
pleased to note that BCM has approached the discussions with a
willingness to align our interests and to work together as joint
leaders in this new mining frontier . "
Further Details on the Transaction
The Company has signed a HoT with BCM regarding the intention
for both parties to enter into an Earn-In Agreement on the
Company's 92.2%-owned Bibemi gold project in northern Cameroon,
where Oriole has already reported a 305,000-ounce ('oz') maiden
gold (or 'Au') resource for the Bakassi Zone 1 prospect. The terms
outlined in the HoT would see BCM earn up to a 50% beneficial
interest in the Project in return for meeting certain staged
commitments as presented in the following table.
BCM Commitment Conditions
US$500k Signature Payment * Following execution of the Earn-In Agreement and on
in cash or before 31 December 2023.
* On receipt of the payment, Oriole will undertake to
BCM to hold a 10% beneficial interest in the Project
on trust for BCM.
-------------------------------------------------------------------
US$4m exploration funding * Expenditure by BCM against this commitment to accrue
immediately following signing of the Earn-In
Agreement.
* Expenditure to be allocated against a pre-agreed work
programme, focussed on expanding and upgrading
Resources at the Project and progressing the
application for an Exploitation Licence.
* Upon completion of each US$500k of tranche of funding,
Oriole shall undertake to hold an additional 5%
beneficial interest in the Project on trust for BCM.
* The technical programme and all administration will
be managed by Oriole through a separate contract, the
key commercial terms of which will be included in the
Earn-In Agreement) and charged to the Project at cost
plus 10%.
* Exploration and Resource drilling to be provided
through a separate contract with BCM and charged to
the Project at cost plus 10% on an open book basis.
-------------------------------------------------------------------
Success-based payments * First Resource Payment: on the release of a
related to the definition 1-million-ounce JORC-classified Resource in relation
of JORC classified Resources, to the Project, BCM will pay Oriole the sum of US$1m
with at least 50% being in cash;
estimated within the
Indicated and/or Measured
categories. * Second Resource Payment: on the release of a
2-million-ounce JORC-classified Resource in relation
to the Project, BCM will pay Oriole an additional sum
of US$1 million in cash; and
* Third Resource Payment: on the release of a
3-million-ounce JORC-classified Resource in relation
to the Project, BCM will pay Oriole an additional sum
of US$1 million in cash.
-------------------------------------------------------------------
The Earn-In Agreement is currently being drafted and is expected
to be executed before the end of the year. Beyond these
commitments, any further expenditure at Bibemi will be on a
contribute or dilute basis. In the event that Oriole's percentage
holding in Bibemi falls below 5%, then its interest will convert to
a 3% NSR royalty on future production at the Project.
BCM are paying Oriole a non-refundable US$50k Advanced Payment,
which will be off-set against the Signature Payment.
The Company will provide a further announcement upon execution
of the Earn-In Agreement in due course.
The transfer of the beneficial interest in the Project to BCM
will be conditional, amongst other things, on obtaining the
requisite governmental or other consents.
Further Details on BCM
BCM began as "Bayswater Contracting", a family firm in Western
Australia in the early 1950s, primarily in the civil works and
mining construction business. Under the same family ownership, BCM
expanded into Ghana in 1990 and thereafter further into Mali,
Tanzania, Guinea and Niger. By the year 2000, BCM had established
itself as one of the leading mining and civil contractors in
Sub-Saharan Africa.
BCM is a long-established Contract Mining and Civil Earthworks
Contractor in West Africa . Previous and existing clients of BCM
include: AngloGold Ashanti Limited; African Minerals Limited
(Tonkolili Iron Ore); Abosso Goldfields; Ausenco; Bogosu Ghana
Limited; Cluff Mining; Endeavour Mining, Ghana; Goldfields Ghana
Limited; Lycopodium; Minproc; Randgold Resources; Afrika Marashiki
Gold Limited; Semafo Holdings; Sabodala Mining Company Societe Des
Mines Du Liptako, S A; Newmont Ghana Gold Limited and Oxus Gold
Resources Glencore/Kazzinc.
Most recently, in January 2023, BCM signed a contract mining
agreement with the current owner of the Tonkolili iron ore mine in
Sierra Leone, Leone Rock Metal Group, which has Proven reserves of
15.8 billion tons of iron ore. The Tonkolili mine is Africa's
second-largest iron ore mine and one of the largest magnetite
deposits globally with an estimated operational period of more than
60 years.
The company employs nearly 5,000 people at its sites with its
diversified business, ranging from mining contracting, earthworks,
civil construction, exploration drilling, drill and blasting and
in-mine technical and management support.
Further Details on Bibemi
At the Bibemi orogenic gold project in northern Cameroon
(177km(2) in area), t he Company's exploration to date has
identified shear-hosted gold mineralisation at four main prospects
- Bakassi Zone 1, Bakassi Zone 2, Lawa West and Lawa East - within
a 12km-long mineralised hydrothermal system at surface. Since
Q1-2021, the Company has completed four phases of diamond drilling
at the Project for a total of 6,685.40m in 54 holes. The majority
of the drilling has been focussed on a circa 1km section at the
southern end of Bakassi Zone 1 and has delivered best intersections
of 14.80m grading 4.27 g/t Au and 7.70m grading 2.74 g/t Au (hole
BBDD050), 6.50m grading 3.92 g/t Au (hole BBDD034), 5.20m grading
1.97 g/t Au (hole BBDD031), and 9.20m grading 1.31 g/t Au (hole
BBDD042) (announcements dated 20 December 2021, 9 February 2022 and
15 September 2022).
On 12 December 2022, the Company reported a maiden Resource for
the Bakassi zone 1 prospect of 305,000 oz grading 2.19 g/t Au in
the JORC Inferred category, within the limit of a US$1,800/oz gold
price pit shell. As far as the Company is aware, this is the first
ever JORC-classified Resource published for gold in Cameroon. The
Resource, which was estimated using 28 diamond holes for a total of
3,840m, was modelled over a strike length of 1,220m and to a depth
of 260m below surface, using a cut-off grade of 0.30 g/t Au and a
top-cut of 20 g/t Au. In addition to the Resource, there is an
Exploration Target estimated to be between 1.5 and 2.2 million
tonnes at grades ranging from 1.10 to 2.10 g/t for between 53,000
and 148,000 oz of Au. The Exploration Target is along strike of the
Resource in areas of the deposit, where there is currently
insufficient sample support to be classified as Inferred
Resource.
With infill drilling, it is expected that the size and
confidence level of the existing Resource will be increased to
incorporate some of the additional ounces. There also exists
significant potential at the other three prospects on the licence
to deliver additional resources, with the ultimate goal of
developing a multi-pit mine operation.
In accordance with the Cameroon Mining Code, the Company is
currently undertaking a series of local-level technical studies,
including a baseline environmental and social impact assessment.
These studies will continue throughout the remainder of 2023 and
will be submitted to the Ministry as part of the Project's
application for an Exploitation Licence at the Project.
For further information on the Bibemi project, including maps
and a JORC Table 1, please see the following
page of the Company's website https://orioleresources.com/projects/bibemi/ .
Competent Persons Statement
The information in this release that relates to the Mineral
Resources and Exploration Targets is extracted from the news
release dated 12(th) December 2022 and available on the Company
website. The Company confirms that it is not aware of any new
information or data that materially affects the information in the
original announcement, and that all material assumptions and
technical parameters, underpinning the estimates continue to apply
and have not materially changed. The Company confirms that the form
and context in which the Competent Persons' (Mr Robert Davies)
findings are presented have not been materially modified from the
original release.
The information in this release that relates to Exploration
Results has been compiled by Claire Bay (Executive Director,
Exploration and Business Development). Claire Bay (MGeol, CGeol) is
a Competent Person as defined in the JORC code and takes
responsibility for the release of this information. Claire has
reviewed the information in this announcement and confirms that she
is not aware of any new information or data that materially affects
the information reproduced here.
** ENDS **
The information contained within this announcement is deemed to
constitute inside information as stipulated under the retained EU
law version of the Market Abuse Regulation (EU) No. 596/2014 (the
"UK MAR") which is part of UK law by virtue of the European Union
(Withdrawal) Act 2018. The information is disclosed in accordance
with the Company's obligations under Article 17 of the UK MAR. Upon
the publication of this announcement, this inside information is
now considered to be in the public domain.
For further information please visit www.orioleresources.com ,
@OrioleResources on Twitter, or contact:
Oriole Resources Plc Tel: +44 (0)23 8065 1649
Tim Livesey / Bob Smeeton / Claire
Bay
BlytheRay (IR/PR Contact) Tel: +44 (0)20 7138 3204
Tim Blythe / Megan Ray
Grant Thornton UK LLP Tel: +44 (0)20 7383 5100
Samantha Harrison / Ciara Donnelly
SP Angel Corporate Finance LLP Tel: +44 (0)20 3470 0470
Ewan Leggat / Harry Davies-Ball
Notes to Editors:
Oriole Resources PLC is an AIM-quoted gold exploration company,
operating in West Africa. It is focussed on early-stage exploration
in Cameroon, where the Company has a maiden Resource of 305,000 oz
Au at 2.19g/t in the JORC Inferred category at the Bibemi project
and has identified multi-kilometre gold and lithium anomalism
within the district-scale Central Licence Package project. At the
more advanced Senala gold project in Senegal, Oriole was advised by
IAMGOLD on 26 April 2023 that AGEM Senegal Exploration Suarl
('AGEM') was now a wholly-owned subsidiary of Managem Group. As
previously announced, AGEM has earned an initial 51% beneficial
interest in the Senala Exploration Licence by spending US$4 million
and has the option to spend up to a further US$4 million by 28
February 2024 to earn an additional 19% interest in the licence.
The Company also has several interests and royalties in companies
operating in East Africa and Turkey that could deliver future cash
flow.
This information is provided by RNS, the news service of the
London Stock Exchange. RNS is approved by the Financial Conduct
Authority to act as a Primary Information Provider in the United
Kingdom. Terms and conditions relating to the use and distribution
of this information may apply. For further information, please
contact rns@lseg.com or visit www.rns.com.
RNS may use your IP address to confirm compliance with the terms
and conditions, to analyse how you engage with the information
contained in this communication, and to share such analysis on an
anonymised basis with others as part of our commercial services.
For further information about how RNS and the London Stock Exchange
use the personal data you provide us, please see our Privacy
Policy.
END
MSCDBBDBSBBDGXC
(END) Dow Jones Newswires
November 20, 2023 02:00 ET (07:00 GMT)
Oriole Resources (LSE:ORR)
Historical Stock Chart
From Apr 2024 to May 2024
Oriole Resources (LSE:ORR)
Historical Stock Chart
From May 2023 to May 2024