Goldcrest Resources plc, the gold exploration company with interests in prospective projects in northern Ghana, is pleased to announce that it has agreed terms to conditionally acquire the Akoko Project in south east Ghana from Castle Minerals Ltd, an ASX-listed gold exploration company (“Acquisition”).
- Akoko Project has a JORC-compliant resource approximately 5km east of Endeavour Mining’s Nzema Mine in south east Ghana
- Significant potential to expand resource at Akoko North and Akoko South deposits
- Majority of resource at Akoko North comprises shallow, free-milling oxide ore with high metallurgical recoveries
- Approximately A$4m has been spent on the project to-date by Castle
Castle Minerals Limited (“Castle”) is an ASX-listed gold exploration company focused on Ghana with licences covering more than 11,000km². Castle has been active in Ghana since 2006 and has discovered seven greenfield gold deposits across its licences.
The Akoko Project consists of one prospecting licence (“Akoko Licence”) in the south east of Ghana on the prolific Ashanti belt. Work carried out by Castle on the Akoko Licence discovered two separate mineralized areas called Akoko North and Akoko South. The Akoko Licence is adjacent to and approximately 5km east of Endeavour Mining’s Nzema gold mine and 30km south of Gold Fields’ Tarkwa gold mine. As a greenfield project, Castle made a virgin discovery when they discovered mineralisation in the licence area.
An indicated and inferred resource of 92,800ozs @ 1.9 g/t Au has been defined on the Akoko North and South deposits at a 0.8 g/t cut-off. At Akoko North a number of higher-grade intersections such as 11m @ 6.65g/t Au, 21m @ 3.01 g/t Au and 18m @ 3.02 g/t Au were encountered. Mineralisation remains open along strike and at depth at both Akoko North and Akoko South, where the soil anomaly continues into Endeavour Mining’s licence.
There are also a number of gold-in-soil geochemical anomalies yet to be tested across the Akoko Licence.
Frederick Bell, Managing Director, commented: “This acquisition allows Goldcrest to advance the Akoko project through the next phase of exploration and gives the Company a defined resource in a prolific and historical mining region. The project comes with significant exploration data and results to date have been very encouraging, highlighting the potential to expand the resource and follow-up on additional anomalies in the licence.”
Terms of the Acquisition
The Acquisition is conditional on (i) the transfer of the Akoko Licence to Goldcrest and the approval of the relevant regulatory authorities in Ghana; (ii) admission of Goldcrest’s ordinary shares to trading on the AIM Market of the London Stock Exchange (“Admission”) within twelve months of the date of the Acquisition agreement, being 27 May 2015, unless waived or extended at the sole discretion of Castle; and (iii) completion of certain milestone payments, details of which are set out below.
Under the terms of the Acquisition agreement between Goldcrest and Castle, the following payments, totalling US$282,500 in cash and US$200,000 in ordinary shares in the Company, are due to Castle:
- an initial payment of US$7,500 in cash within 7 days of the date of the Acquisition agreement;
- US$75,000 in cash upon completion of the transfer of the Akoko Licence to Goldcrest from Topago Mining Limited, Castle’s wholly-owned subsidiary;
- US$100,000 cash and US$100,000 in shares thirty days following Admission. The issue price of the shares will be calculated by reference to the three month volume weighted average price of Goldcrest’s ordinary shares traded on ISDX immediately prior to Admission;
- US$100,000 in shares six months following Admission. The issue price of the shares will be calculated at the three month volume weighted average price of Goldcrest shares traded on AIM immediately prior to the six month anniversary of Admission; and
- a final fixed payment of $100,000 in cash twenty months following Admission.
Additional payments in cash or equity (at Goldcrest’s discretion) shall fall due dependent on future exploration success. The first such additional payment of US$500,000 would fall due on definition of a resource totalling 0.5Moz; further payments of US$500,000 would fall due for each additional 0.5Moz resource defined thereafter up to a total of 2Moz.
The Company has more than sufficient cash resources to meet payments (i) and (ii) as they fall due and would seek to raise additional funds at the time of Admission to make payments (iii) and (v).
The Directors of the Issuer accept responsibility for this announcement.
Goldcrest Resources plc
Tel: 0755 4872 794
Cairn Financial Advisers LLP
Avi Robinson / Jo Turner
Tel: 020 7148 7900