Aurum Resources signs deal to acquire 35% stake in Ivorian miner MSP

Aurum Resources, through its subsidiary Plusor Global, has signed an agreement to acquire 35% of the registered share capital of Ivorian company Major Star Plus (MSP).

The deal allows Aurum to potentially earn up to an 87% interest in three of MSP's permit applications.

Among these is an advanced gold exploration licence application for a property directly west and south of Aurum’s fully owned Boundiali South Tenement, as well as another adjacent to Aurum’s 90%-owned Napié gold project.

Upon completion, the deal will increase Aurum's landholding at these two gold projects in Côte d'Ivoire.

Under the terms of the agreement, Aurum will pay approximately CFA Fr7m ($12,415) for its share in MSP, with MSP's total registered share capital valued at CFA Fr20m.

Prior to the first exploration permit, Aurum will also contribute roughly CFA Fr23m to MSP for administration and ongoing operations.

During the first phase, which spans 24 months following the grant of an exploration permit, Aurum has committed to either spending the equivalent of $1.5m on exploration work or completing 7,000m of diamond drilling.

Additionally, Aurum will make a first milestone payment to MSP, which involves a cash or share contribution equivalent to $250,000 once JORC resources of at least 250,000oz are defined with a minimum grade of 0.5g per tonne.

In the second phase, within four years of receiving the exploration permit, Aurum must either spend $3m on exploration or undertake 15,000m of diamond drilling.

The second milestone payment to MSP will be $1/oz of indicated JORC resources, with specific cut-off grades depending on the depth of the resources.

The third phase involves completing a pre-feasibility study, with Aurum allocating funds for the necessary expenditures and exploration work. A third milestone payment will be made to MSP, again based on the updated JORC resources.

Upon completing each phase, Aurum's rights and interests in the exploration permits will increase to 51%, 80% and 95%, respectively.

During the mining exploitation phase, MSP has the option to contribute to construction costs for a future mine, which would result in a 4.5% stake in the operating company. The company can also opt for a 3% free carry if it chooses not to contribute.

Aurum, through Plusor Global and Mako Gold, will work closely with MSP to secure the exploration licences for the permit applications.

Once granted, Aurum will initiate exploration programmes including diamond drilling to uncover potential new gold discoveries.

Aurum managing director Caigen Wang said: “It is really a rare opportunity to have one partnership that can benefit both our Boundiali and Napié gold projects but also provide an additional gold exploration project in central Côte d’Ivoire.

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“The Aurum-MSP partnership is an example of the attractiveness of Aurum’s unique exploration and discovery capacity and track record from owning ten diamond drill rigs and drilling teams with over seven million ounces of gold discovery in Côte D’Ivoire in the past ten years.”

In May this year, Montage Gold formed a strategic partnership with Aurum. This included acquiring a 9.9% interest in Aurum through the issuance of 2.89 million common shares.

"Aurum Resources signs deal to acquire 35% stake in Ivorian miner MSP" was originally created and published by Mining Technology, a GlobalData owned brand.

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