REG - Oriole Resources PLC - Completion of Second Option Period at Senala

Oriole ResourcesAnnouncement

19/02/2024 07:00

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RNS Number : 5210D  Oriole Resources PLC  19 February 2024

Oriole Resources PLC

('Oriole Resources' or 'Oriole' or 'the Company')

 

Completion of Second Option Period at Senala

 

Oriole Resources (AIM: ORR), the AIM-quoted gold exploration company focussed
on West Africa, provides an update on its Senala gold project in Senegal
('Senala' or the 'Project'), where AGEM Senegal Exploration Suarl ('AGEM'), a
wholly-owned subsidiary of Managem Group ('Managem'), has now completed a
six-year earn-in period at the Project. Oriole's interest in Senala is held
via its 85% interest in Stratex-EMC Sarl ('Stratex-EMC'), the holding vehicle
for the Senala Exploration Licence.

 

Managem has confirmed to the Company that, since the 2018 Option Agreement was
signed (announcement dated 1 March 2018), AGEM has spent approximately US$5.8
million on the Project. Accordingly, AGEM's beneficial ownership position in
the Senala Exploration Licence is estimated to be 59%, and Oriole will shortly
be undertaking a review of expenditure to confirm this percentage ownership.

 

Discussion on the next steps are underway, which would include:

·    the formation of a joint-venture company and associated technical
committee;

·    the submission of a work plan and budget by Managem; and

·    a decision by Stratex-EMC on whether to contribute to the work costs
or dilute its percentage ownership.

On the basis that Stratex-EMC does not contribute, it is estimated that
Managem would need to spend a further US$31 million at the Project to dilute
Stratex-EMC below 10%, after which its interest would convert to a 2.5% net
smelter returns ('NSR') royalty. It should be noted that there exists a mutual
right of first refusal should either party look to sell its interest in
Senala.

As previously reported, a renewal application has also been submitted, under
the existing holding entity of Stratex-EMC, for a further three-year term
(announcement dated 2 January 2024). A decision on this renewal is awaited.

 

 

** ENDS **

 

The information contained within this announcement is deemed to constitute
inside information as stipulated under the retained EU law version of the
Market Abuse Regulation (EU) No. 596/2014 (the "UK MAR") which is part of UK
law by virtue of the European Union (Withdrawal) Act 2018. The information is
disclosed in accordance with the Company's obligations under Article 17 of the
UK MAR. Upon the publication of this announcement, this inside information is
now considered to be in the public domain.

 

For further information please visit www.orioleresources.com
(http://www.orioleresources.com) , @OrioleResources on Twitter, or contact:

 

 Oriole Resources Plc                    Tel: +44 (0)23 8065 1649
 Tim Livesey / Bob Smeeton / Claire Bay

 BlytheRay (IR/PR Contact)               Tel: +44 (0)20 7138 3204
 Tim Blythe / Megan Ray

 Grant Thornton UK LLP                   Tel: +44 (0)20 7383 5100
 Samantha Harrison / Ciara Donnelly
 SP Angel Corporate Finance LLP          Tel: +44 (0)20 3470 0470

 Ewan Leggat / Harry Davies-Ball

 

Notes to Editors:

 

Oriole Resources PLC is an AIM-listed gold exploration company, operating
in West Africa. It is focussed on early-stage exploration
in Cameroon, where the Company has reported a Resource of 375,000 oz Au at
2.30g/t in the JORC Inferred category at its 82.2%-owned Bibemi project and
has identified multi-kilometre gold and lithium anomalism within the
district-scale Central Licence Package project. BCM International is currently
earning up to a 50% interest in the Bibemi and Mbe projects in return for a
combined investment of US$1.5m in signature payments (US$1.05m of which has
already been received), up to US$8m in exploration expenditure, as well as
JORC resource-based success payments.

 

At the more advanced Senala gold project in Senegal, AGEM Senegal
Exploration Suarl ('AGEM'), a wholly-owned subsidiary of Managem Group, has
recently completed a six-year earn-in to acquire an estimated 59% beneficial
interest in the Senala Exploration Licence by spending US$5.8 million. A
review of expenditure and discussions on the formation of a joint-venture
company are currently underway. The Company also has several interests and
royalties in companies operating in East Africa and Turkey that could
deliver future cash flow.

.

 

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