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Turaco Secures Rights to Expand Afema Project Area by 30% to +1,600km2
Turaco Secures Rights to Expand Afema Project Area by 30% to
About this update from Turaco Gold Ltd
Turaco Gold Limited (ASX | TCG) ('Turaco' or the 'Company') is pleased to announce it has entered into an exclusivity and option agreement with Pioneer Minerals SARL, securing acquisition rights over an additional 366km2 of highly prospective exploration tenure adjoining Turaco's 2.52Moz Afema Project in southeast Cote d'Ivoire . The transaction further extends Turaco's already dominant coverage of the world class Sefwi greenstone belt within Cote d'Ivoire to include additional prospective shear corridors, including the western margin of the main volcanic sequence. Turaco is unaware of any previous exploration activities over the permit application area, highlighting the underexplored nature of the area. The permit lies immediately south of the hydroelectricity producing lake, Lac Ayame, which is aligned in a prominent northeasterly trend suggesting a strong northeast structural grain in the area consistent with prospective regional shear zones Managing Director, Justin Tremain commented: 'Securing exclusivity over this application allows Turaco to materially expand the Afema Project area to over 1,600km2 . Importantly, the application further consolidates Turaco's control over the majority of the interpreted extension of the prolifically mineralised Sefwi Belt in Cote d'Ivoire . It is a relatively low cost for exclusivity and a 12-month option to undertake initial reconnaissance exploration in this prospective region.' Upon grant of the exploration permit, Turaco may elect to acquire a 12-month option to undertake initial reconnaissance exploration consisting of low-cost generative exploration techniques such as stream sediment and reconnaissance soils sampling possibly paired with airborne geophysics. These programs would form the basis of Turaco's decision to exercise the option to acquire 100% of the granted permit Transaction Terms Turaco (and its 100% owned subsidiary Turaco Cote d'Ivoire SARL) have executed a binding term sheet ('Term Sheet') with Pioneer Minerals SARL ('Pioneer'), an unrelated entity to Turaco, in respect to an application for an exploration permit covering 366km2 in the Aboisso region of southeast Cote d'Ivoire ('Application'). Under the Term Sheet, Pioneer has granted Turaco: o An initial exclusivity period ('Exclusivity') expiring upon the earlier of 15 days after the granting of an exploration permit ('Permit') that is subject to the Application, or the date that Turaco terminates the Exclusivity or exercises its right to acquire the Option and o The right for Turaco to acquire 100% of the Permit ('Option') for a period of 365 days ('Option Period') from the date of granting of the Permit. During the Option Period, Turaco must spend a minimum of XOF130 million (approximately US$220,000 ) on exploration within the Permit ('Minimum Expenditure'). Upon grant of the Permit, Turaco must make a further payment of US$100,000 in cash or Turaco shares (at Pioneer's election) within 5 business days of Turaco exercising the right to acquire the Option If Pioneer elects to be paid in Turaco shares, the number of shares will be determined by the 15-day VWAP at the date of Turaco exercising the right to acquire the Option. To exercise the Option and acquire 100% of the Permit, Turaco must issue to Pioneer (or its nominee) 2.25 million Turaco shares and grant Pioneer a net smelter royalty of 2.0% ('NSR'). Turaco will have the right to buy-back 50% (or 1.0%) of the NSR for US$3.0 million . Turaco may withdraw at any time but if it does so during the Option Period it must have met the Minimum Expenditure. Contact: Justin Tremain Lucas Robinson Managing Director Investor Relations Tel: +61 8 9480 0402 Email: [email protected] Previously Reported Information References in this announcement may have been made to certain ASX announcements, including exploration results and Mineral Resources. For full details, refer to said announcement on said date. The Company is not aware of any new information or data that materially affects this information. Other than as specified in this announcement and other mentioned announcements, the Company confirms that it is not aware of any new information or data that materially affects the information included in the original market announcement(s), and in the case of estimates of Mineral Resources, that all material assumptions and technical parameters underpinning the estimates in the relevant announcement continue to apply and have not materially changed other than as it relates to the content of this announcement. The Company confirms that the form and context in which the Competent Person's findings are presented have not been materially modified from the original announcement (C) 2024 Electronic News Publishing, source ENP Newswire