Gold producer Aurum Resources has increased its footprint in Côte d'Ivoire, after executing a binding term sheet to fully acquire the Boundiali South exploration tenement, located next to its flagship Boundiali gold project, from Turaco Gold.
The development caps off yet another successful achievement for the West Perth-based company this month.
Last week, Aurum shares climbed by 30 per cent, following the release of positive assay results at Boundiali. It also recently committed to purchasing a third diamond drill rig to bolster its drilling fleet.
Once the purchase conditions have been satisfied, Turaco will have the option of receiving an $800,000 cash consideration payment or $1.2 million worth of Aurum shares.
“We are very pleased to be able to secure such an advanced gold tenement to the immediate south of our highly prospective Boundiali gold project in Côte d’Ivoire," Aurum managing director Dr Caigen Wang said.
"The wide and high-grade gold intercepts at the Boundiali south tenement are well in line with our recently reported excellent gold intercept such as 73m@2.15g/t and four other diamond holes on the Boundiali gold tenement."
Turaco's managing director Justin Tremain said the company's divestment of the Boundiali south tenement would be put to good use.
“The divestment of the Boundiali permit is consistent with Turaco’s previously stated intention to rationalise its large exploration position in Côte d'Ivoire to focus on the Afema gold project in the south-east and the Eburnea gold project in central Côte d'Ivoire."
Aurum has taken several steps to enhance its operations at Boundiali in 2024, after appointing Dr Wang and Yaya Ouattara as the company's managing director and exploration manager respectively.
It also successfully raised $7 million in February to accelerate exploration activities at the project.
The gold producer also told the market it had $3.9 million cash in the till as of February 29, with a further $3.3 million likely to be added from the capital raise in due course, subject to shareholder approval.
It also posted a net loss after tax of $694,481 in the first six months of the 2024 financial year, up from a $351,915 loss during the prior corresponding period.
Aurum last traded at 26 cents per share, as of 9.25am AWST.
