Waraba Gold: Acquires 80% Stake in Ivorian Gold License PR-683

• Waraba Gold has agreed to acquire an 80% stake in the Ivorian gold exploration license PR-683 from CDI Minerals.
• The Canadian company plans to pay up to 5 million Australian dollars in cash for the acquisition.
• The PR-683 permit covers 212.66 square kilometers in a highly prospective gold region near existing Waraba assets.
• Completion of the deal is contingent on approval from Côte d'Ivoire's Ministry of Mines and the extension of the permit beyond November 2027.
• An additional payment of up to 2.3 million Australian dollars is tied to the permit's extension.

The necessity for Côte d'Ivoire Ministry of Mines approval and the extension of the Leo Resources PR-683 stake beyond its current term are pivotal factors that will determine the ultimate success and full financial implications of this Ivorian gold exploration M&A deal.

Waraba Gold, a Canadian mining firm, has formalized a binding agreement to acquire a significant 80% stake in an Ivorian gold exploration license, PR-683. This strategic move, announced on October 26, targets the Tengrela region in Côte d'Ivoire's far north, aiming to bolster Waraba's footprint in gold exploration. The transaction involves purchasing shares from CDI Minerals, a subsidiary of the Australian entity Desert Metals, which currently holds an interest in Leo Resources, the company that possesses the PR-683 permit.

The financial terms of the Waraba Gold CDI Minerals acquisition stipulate a payment of up to 5 million Australian dollars, equivalent to approximately 2 billion CFA francs. This sum will be disbursed entirely in cash through a series of installments. An initial deposit of 500,000 Australian dollars was made upon the agreement's signing, with a further 1.9 million Australian dollars due upon the completion of the acquisition. The remaining 20% interest in Leo Resources will continue to be held by the Ivorian partner, Smart Mineral Explorer (SMEX), maintaining a local stake in the venture.

This acquisition is central to Waraba Gold's strategy to consolidate and expand its operational presence in Côte d'Ivoire. The PR-683 license covers an area of 212.66 square kilometers, spanning the departments of Boundiali, Kouto, and M'Bengué. Should the transaction finalize and Waraba's application for the "Tengrela South" permit receive approval, the company's total controlled area around Tengrela could reach approximately 1,000 square kilometers, significantly enhancing its exploration potential.

The region is highly regarded for its gold prospectivity, strategically positioned between established mining operations such as Syama in Mali and Sissingué in Côte d'Ivoire. The permit area itself adjoins existing land held by Waraba, facilitating the consolidation of several exploration zones into a cohesive geological unit. This area extends nearly 73 kilometers along the Boundiali greenstone belt, a geological formation renowned for its gold potential, and is also situated near other significant discoveries like Boundiali and Koné. Prior exploration work on the PR-683 permit has already yielded promising results, with 1,141 drill holes totaling about 67,600 meters of drilling, which have successfully identified high-grade gold zones.

The finalization of Waraba Gold's acquisition of Ivorian gold license PR-683 is contingent upon several critical regulatory approvals and conditions. Foremost among these is the requirement for approval from the Ivorian authorities, specifically the Ministry of Mines, Petroleum, and Energy. Certain conditions must be satisfied within three months of the agreement's signing, while others, including the crucial ministerial approval, are set for completion within six months.

A significant portion of the payment structure, an additional sum of up to 2.3 million Australian dollars, is directly tied to the Tengrela gold permit extension beyond its current expiry date of November 3, 2027. This condition highlights a key regulatory hurdle and introduces a degree of permitting risk for the transaction. The necessity for Côte d'Ivoire Ministry of Mines approval and the extension of the Leo Resources PR-683 stake beyond its current term are pivotal factors that will determine the ultimate success and full financial implications of this Ivorian gold exploration M&A deal.

Lawyers advising on mining M&A in Côte d'Ivoire should note the critical regulatory conditions for deal finalization, specifically the need for Ministry of Mines approval and the extension of exploration permits beyond their current expiry, which introduces significant permitting risk and requires careful due diligence.

Source: Original reporting via Daba Fina