What's Happening?
Aurum Resources, through its subsidiary Plusor Global, has signed an agreement to acquire a 35% stake in Major Star Plus (MSP), an Ivorian mining company. This transaction will expand Aurum's landholding at its Boundiali and Napié gold projects in Côte d'Ivoire. The deal allows Aurum to potentially earn up to an 87% interest in MSP's permit applications, which include advanced gold exploration licenses adjacent to Aurum's existing projects. Aurum will pay approximately CFA Fr7m ($12,415) for its share in MSP and contribute CFA Fr23m for administration and operations. The agreement outlines a phased exploration program, with commitments to spend on exploration work or complete diamond drilling.
Why It's Important?
The acquisition of a stake in MSP is a strategic move for Aurum Resources, enhancing its exploration capabilities in Côte d'Ivoire, a region known for its gold potential. This expansion could lead to significant new gold discoveries, bolstering Aurum's portfolio and increasing its influence in the mining sector. The deal reflects Aurum's commitment to growth and exploration, potentially leading to increased resource estimates and production capacity. For the U.S. mining industry, such international partnerships may offer insights into global resource management and exploration strategies.
What's Next?
Aurum Resources plans to initiate exploration programs, including diamond drilling, upon receipt of permits. The phased approach involves significant investment in exploration activities, with milestone payments tied to resource discoveries. Aurum's rights and interests in the exploration permits will increase progressively, contingent on exploration success. The partnership with MSP may also lead to construction of a future mine, with MSP having options to contribute to costs or opt for a free carry stake.
