Business
Starcore Embarks on Geopolitical Diversification with Côte d'Ivoire Acquisition
Vancouver, British Columbia--(Newsfile Corp. - August 16, 2023) - Starcore International Mines L...
About this update from Starcore International Mines Ltd.
[{"type":"text","content":"Starcore Embarks on Geopolitical Diversification with Côte d'Ivoire AcquisitionVancouver, British Columbia--(Newsfile Corp. - August 16, 2023) - Starcore International Mines Ltd. (TSX: SAM) (\"Starcore\" or the \"Company\") announces that it has entered into a Share Exchange Agreement with EU Gold Mining Inc. (\"EU Gold\"), a private company holding mineral property interests in Côte d'Ivoire, whereby Starcore will acquire all of the issued and outstanding shares of EU Gold in exchange for Starcore shares.The Share ExchangeStarcore will be issuing 7,883,333 shares to acquire the EU Gold shares. This will represent approximately 12.4% of the post-acquisition issued and outstanding shares of Starcore. Included in the shares issued to EU Gold shareholders will be 3,000,000 shares of Starcore issued to current management and directors of Starcore who hold an interest in EU Gold. (See \"Other\" below.) The calculation of shares to be issued was based on two-thirds of one Starcore share for each one EU share, with a VWAP for Starcore at $0.15 applied to EU Gold shares. As at the date of the Share Exchange Agreement, EU Gold had approximately $630,000 of working capital to be used for its first-year exploration program.Why EU GoldThe acquisition of EU Gold is Starcore's gateway into a project more commonly known as the Kimoukro Gold Project located in the West African country of Côte d'Ivoire (the \"Kimoukro Project\"). By acquiring EU Gold, Starcore assumes all of the rights and obligations contained in a Mineral Property Option Agreement that EU Gold entered into with K Mining SARL (\"K Mining\"), an Ivorian gold exploration company in Abidjan, Côte d'Ivoire. K Mining owns four gold exploration permit applications covering 830 km2, which includes the Kimoukro Project which covers 14.48 km2.With the Share Exchange, EU Gold will become a wholly-owned subsidiary of Starcore, giving Starcore the sole and exclusive right and option (the \"Option\") to acquire from K Mining all of its right, title and interest in and to the Kimoukro Project. The Option calls for the following consideration: (i) payment to K Mining of an aggregate of $400,000; (ii) issue to K Mining of 8,666,667 shares of Starcore; and (iii) incur an aggregate of US$3,750,000 of expenditures on the Kimoukro Project (collectively the \"Option Price\"), in...