Aurora Minerals has executed a three way deal with African Lion and Predictive Discovery, offering African Lion an $800,000 placement and in return receiving a 17.2 per cent slice in Predictive.
By acquiring close to 67 million shares in Predictive from African Lion, Aurora is extending its interest in African gold miners, adding to an existing 20 per cent holding in Golden Rim Resources.
“The investment in Predictive represents our second strategic investment in gold exploration in West Africa and in particular Burkina Faso,” said Aurora managing director Martin Pyle.
Aurora expects to receive some synergies from the two operations.
“Predictive has built a prospective tenement package comprising the Bonsiega project in the Fada N’Gourma greenstone belt situated in the east of the country and along strike from the Samira Hill gold mine, located just inside the Niger border to the north-east,” said Mr Pyle.
“Aurora sees this as complementary to the objectives of Golden Rim,” he added.
In exchange, Aurora will issue a placement of nearly 15 million shares at $0.059 to African Lion, giving the company a stake of nearly 13 per cent in Aurora post placement.
African Lion is a dedicated mining fund specializing in investment in resource projects in Africa.
Gold and uranium explorer Predictive traded at 0.8 cents per share (down 11 per cent) at the time of writing, a slide almost 60 per cent since this time last year.
Today’s performance was better for Aurora, up 8.7 per cent to 5 cents per share.