Riedel Resources has entered an agreement with Golden Rim Resources to purchase five gold exploration permits in Burkina Faso in exchange for $900,000 in cash and 12.5 million Riedel shares.
The exploration permits, known as Galgouli South, Gonsin, Keri, Moaga and Tagou cover an area of 1,076 square kilometres in Burkina Faso.
Riedel said the permits were highly prospective for the discovery of significant gold deposits.
The Perth-based explorer said it had already concluded site visits and due diligence would be completed by mid-December, paving the way for the start of an expanded exploration program.
“This permit package offers Riedel a compelling opportunity to establish a significant position in the fastest growing gold producing region in the world,” managing director Jeffrey Moore said.
“When coupled with our Marymia project located in the Doolgunna-Thaduna region of WA, Riedel ahs significant tenement holdings in two of the most prospective precious and base metals minerals provinces in Western Australia and West Africa.
“These opportunities represent an outstanding business case for prospective investors with significant exploration upside from a modest market capitalisation base.
“We also consider it a major advantage to be able to commence a partnership with Golden Rim who have a substantial exploration footprint together with demonstrable exploration success and a highly developed knowledge base in West Africa, and specifically in Burkina Faso.”
At close of trade today Riedel’s stock was steady at 11 cents, while Golden Rim shares also did not move, staying at 13 cents.
Golden Rim Resources managing director Craig Mackay said the transaction held a number of advantages for the company.
“While the permits being sold to Riedel are considered prospective, their divestment will allow us to focus on our core project areas in Burkina Faso and Mali where more than 55,000m of drilling has been planned for this field season and is due to commence shortly,” Mr Mackay said.
