[Burkina Faso] Acacia Mining, Sarama terminate earn-in agreement for South Hounde project
Gold mining multinational Acacia Mining has signed a binding conditional agreement with its partner, Sarama Resources Ltd., to terminate the earn-in agreement in respect of the South Houndé Project in south-western Burkina Faso.
The termination of the earn-in agreement is conditional on definitive documentation being agreed by the parties before April 30, 2019.
Acacia’s divestment of South Houndé fits with the Company’s strategy of divesting certain non-core assets as part of an ongoing review of its exploration portfolio.
The agreement will allow Sarama to move to 100% ownership of the Project by making a payment of $2 million in staged payments.
Acacia will also receive $2 million once commercial production commences and retain an improved net smelter return royalty of 1-2%, based on a sliding rate basis on gold price received and a capped gold production of 1Moz Au. In addition, Acacia will be granted 5 million warrants for common shares in Sarama, exercisable for five years.
Acacia expressed its commitment to continued exploration in Burkina Faso with various earn-in agreements still active and which provide exposure to approximately 2,000 km² of the prospective Houndé Belt.