Nordgold buying Ronguen project in Burkina Faso for $4.25 mln
MOSCOW. June 16 (Interfax) - Gold miner Nordgold has reached an agreement to buy Goldrush Burkina S.A.R.L., a wholly owned subsidiary of Canadian mining exploration company Goldrush Resources, Nordgold said in a statement.
The deal is valued at $4.25 million, $3.25 million of which Nordgold will pay for immediately and $1 million of which will be held by an escrow agent until July 1, 2015 and December 31, 2017. In addition, at a price of at least $1,700 per ounce of gold, Goldrush will be provided with royalties of 1% from the asset. Nordgold can purchase the right for royalties at any time for $1 million.
Goldrush Burkina owns the Ronguen Gold project in Burkina Faso, located just 10 kilometers from the Bissa mine, which belongs to Nordgold. The project includes the Tikare and Kongoussi 1 mineral permits. "According to 2012 technical report performed by SRK consulting for Goldrush, it contains the total gold resources of 384 thousand ounces at 1.3 g/t, including total Measured and Indicated mineral resources of 332 thousand ounces of gold at a grade of 1.22 g/t Au," Nordgold said.
Goldrush has already invested $7.9 million in the project. Nordgold is hoping to finish a feasibility study in the second quarter of 2015.
