[Burkina Faso] Tajiri Resources Corp to acquire full control of advanced Reo Gold Project
South America mining and exploration group Tajiri Resources Corp has expressed interest in acquiring 100 per cent stake in the advanced Reo Gold Project in Burkina Faso subject to TSX Venture Exchange approval.
The board of directors decision comes following more than a month of due diligence by key Company personnel.
The due diligence included both a technical review and geopolitical assessment of the project including, but not limited to, management’s traveling to Burkina Faso to undertake meetings with relevant government officials, the Minister of Mines, reviewing all available geological data provided by Middle Island Resources (or ‘MDI’), such as drill databases, detailed IP results, RC chips of significant intercepts, and several days on the property with time spent at all licenses that make up the Reo Project proper.
Management was satisfied with its review of outstanding matters on which the decision was based and has a high level of confidence in the move forward with the option.
In addition, the Company and MDI have agreed to amend the terms contained in the HoA and underlying option wherein the Company will now issue a fixed 5,000,000 shares to MDI upon entering the option rather than in tranches, over two years, an adjusted 4.139% interest in the Company’s fully diluted equity.
The variation is advantageous to both parties with MDI being rewarded immediately for their very considerable past expenditure and reducing the dilution going forward for the shareholders of Tajiri. The board is most happy with the variation given what it sees as the manifest potential of the Reo project to host substantive gold resources.
As of the date of this announcement Tajiri will have fifteen business days to provide the first-year payment on the option to MDI consisting of both $150,000 cash and five million shares.
The Company is confident of its ability to meet the obligation and will provide follow up announcements as the need arises to update stakeholders as to the progress of the option and payment.
Graham Keevil, President & CEO stated, “These are exciting times for the Company. The Reo Project presents us with the unique opportunity to purchase an advanced gold exploration and development asset where our geological team will be able to excel in their element of improving on an existing exciting discovery. The Reo Project’s historical results are impressive and having now been able to review data and visit the site, I feel it holds tremendous upside in the form of a potentially economic, and immediately developable gold asset in an excellent mining jurisdiction.”