India's BIC West Africa to acquire two gold projects in Burkina Faso
TLDR
- Asara Resources sells non-core Kouri and Babonga gold projects in Burkina Faso to BIC West Africa for $2.2 million.
- Deal includes upfront payment of $550,000, with second payment upon SPA execution and final payment upon completion.
- Sale enables Asara to advance Kada Gold Project in Guinea, repay convertible note, and become debt-free.
West African gold explorer Asara Resources has struck a deal with private gold exploration company BIC West Africa (BIC) for the sale of its non-core Kouri and Babonga gold projects in Burkina Faso.
The transaction, valued at $2.2 million includes an upfront non-refundable payment of $550,000 already received, a second payment of $550,000 due upon SPA execution, and a final payment of $1.1 million upon completion.
Asara will divest 100% of the issued capital in its wholly owned subsidiary, Golden Rim Resources Burkina SARL, which holds the licenses for both projects. Funds from this sale will be allocated to advance the Kada Gold Project in Guinea and to repay the remaining portion of a convertible note, making Asara debt-free.
Key Takeaways
The projects have been on care and maintenance since FY2022 with no recent exploration activities.
Completion is conditional on receiving necessary authorizations from the Burkina Faso Minister of Mines, no changes in Burkina Faso laws that affect the transaction, and requisite amendments to GMRB's articles of association. BIC West Africa Limited, an Indian-owned, Mauritian-based gold exploration company, focuses on Francophone West African countries, including Burkina Faso, Mali, Guinea, and Côte d'Ivoire. The company has more than 40 years of mining experience in India and a geological team with over 215 years of combined experience. It aims to transition its multiple advanced-stage gold assets in Burkina Faso into producing gold mines within the next two years.
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