Canadian mineral exploration company Waraba Gold has entered into an earn-in agreement to acquire up to an 80% stake in Somaco Global Resources over the next four years.
Somaco Global holds two prospective gold licence applications in the northern Ivory Coast, including the Sirasso licence and the Tengrela & Tiegba licences.
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The Sirasso licence, spanning 369.34km², lies along the Senoufou greenstone belt and was previously held in a joint venture (JV) with Barrick Gold.
The Tengrela & Tiegba licences, covering 398.7km² and 368.97km², respectively, are prospective for gold and manganese and are situated near existing gold mines and mineralised shear zones.
Under the earn-in agreement, an initial payment of $500,000 to Somaco’s shareholders is due within two months, followed by an additional $1.5m over two years.
Waraba must also meet exploration commitments of $5m over four years and issue six million common shares upon signing a definitive JV agreement to earn the full 80% stake.
The company also plans to raise up to $500,000 through non-convertible unsecured debentures to fund the initial earn-in agreement commitments and general working capital.
Waraba Gold will appoint two nominees from Somaco as directors in relation to the earn-in agreement.
The company also provided an update on its Mali operations stating that it has suspended activities at the Fokolore Gold Project due to security concerns, despite having submitted a letter of intent for a mining permit in June 2024.
Waraba Gold is working towards resuming operations when conditions allow.
Recently, CEOs of gold mining companies stated that Mali’s new mining code needs adjustments to attract investment in new projects.
