Business
Turaco Gold Limited - Agreement to Divest the Eburnea Gold Project
Turaco Gold Limited - Agreement to Divest the Eburnea Gold
About this update from Turaco Gold Ltd
[{"type":"text","content":"Turaco Gold Limited (ASX | TCG) ('Turaco' or the 'Company') is pleased to announce it has entered into share sale and purchase agreements ('Agreements') with ASX-listed Santa Fe Minerals Ltd ('Santa Fe') for the divestment of its interest in the Satama granted exploration permit and the Bouake North exploration permit application that make up the Eburnea Gold Project in central Cote d'Ivoire.\nThis divestment is consistent with Turaco's rationalisation of its exploration projects in Cote d'Ivoire to focus its resources on the Afema Gold Project, whilst retaining upside exposure through shareholdings in listed entities.\nConsideration to be received by Turaco for the sale of the Eburnea Gold Project will be: 12,000,000 fully paid ordinary shares in Santa Fe; andt 4,000,000 performance rights that convert into fully paid ordinary shares in Santa Fe upon meeting of certain milestones\nManaging Director, Justin Tremain commented: 'Through a cornerstone shareholding in Santa Fe, Turaco will continue to benefit from any exploration success within the Eburnea Project by Santa Fe whilst not distracting Turaco's focus on the Afema Project. This agreement follows other recent divestment of non-core permits by Turaco that has resulted in the generation of significant value for Turaco.'\nTransaction Terms Under the Agreements, Turaco will divest: its 100% shareholding in CDI Mining Holdings Pty Ltd ('CDI Mining', a company incorporated in Australia)T which holds a 100% interest, via a wholly owned Cote d'Ivoire subsidiary, in the Satama exploration permit and its shareholding in Turaco Bouake Exploration SARL ('Turaco Bouake', a company incorporated in Cote d'Ivoire) which holds the Bouake North exploration permit application The consideration payable by Santa Fe to Turaco is to comprise: 12,000,000 fully paid ordinary shares in Santa Fe, subject to a 12-month escrow andp 4,000,000 performance rights, with a 4-year term, to convert into fully paid ordinary shares in Santa Fed on the announcement of a JORC Mineral Resource estimate of 0.5 million ounces of gold at a 0.5g/t gold cut-off (2,000,000 performance rights) and 1.0 million ounces of gold at a 0.5g/t gold cut-off (2,000,000 performance rights) Whilst holding at least a 10% shareholding in Santa Fe, Turaco will have the right to appoint a Non-Executive Director to the Board of Santa F...