REG - Oriole Resources PLC - Execution of Bibemi Earn-In Agreement

Oriole ResourcesAnnouncement

05/01/2024 07:00

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RNS Number : 7248Y  Oriole Resources PLC  05 January 2024

Oriole Resources PLC

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

 

Execution of Bibemi Earn-In Agreement

 

Oriole Resources (AIM: ORR), the AIM-quoted gold exploration company focussed
on West Africa, is delighted to report that, further to its announcement dated
2 January 2024, it has now signed a definitive earn-in agreement ('Earn-In
Agreement') with BCM International Limited ('BCM') in relation to the
Company's Bibemi gold project ('Bibemi' or the 'Project') in Cameroon.

 

 

Highlights

 

·    Execution of the Bibemi Earn-In Agreement whereby BCM will earn up to
a 50% interest in Bibemi in return for meeting certain commitments which, in
addition to the Signature Payment, include US$4 million in exploration
expenditure and future resource-linked success-based payments;

·    A signature payment ('Signature Payment') of US$450,000 to the
Company is now being processed by BCM, which follows an earlier advanced
payment of US$50,000 (announcement dated 20 November 2023);

·    A large component of the exploration expenditure at Bibemi will
include resource-expansion drilling. It is anticipated that drilling will
start at Bibemi in Q1-2024 and further details on the planned programme will
be released in due course;

·    Expenditure against the US$4 million funding has already commenced,
with approximately US$72k received to support camp upgrades and ongoing
technical studies ahead of the application for an exploitation licence in
2024;

·    Execution of a second agreement with BCM, the 'Mbe Earn-In Agreement'
(announcement dated 20 November 2023), is expected later this month.

 

Oriole Resources CEO, Tim Livesey, said: "We are delighted to have signed the
first of two landmark agreements with BCM and to have already established a
very close and strong working relationship with our new partner. With our
strategies and goals aligned at Bibemi, and also Mbe, we believe this is the
start of something significant for Oriole, BCM and for exploration and mining
in Cameroon.

"We are a long way from the Company realignment and rebranding we undertook
back in 2018, when I originally took the helm, and I am very pleased to see
that the decisions we have made and the time we have invested are now paying
dividends for the team at Oriole, our partners, shareholders and the wider
exploration and mining community in Cameroon."

 

 

Further Details

 

On 20 November 2023, the Company signed two Heads of Terms with BCM
International Limited, a well-respected mining and civil contractor, related
to earn-ins by BCM on the Company's Bibemi (92.8%-owned) and Mbe (90%-owned)
gold projects, respectively.

 

The Company today reports that a definitive Earn-In Agreement has been
executed for the Bibemi project in northern Cameroon, securing up to US$4
million in exploration expenditure for the Project, in addition to a Signature
Payment and JORC resource linked success-based payments (announcement 20
November 2023).

 

Under the terms of the Bibemi Earn-In Agreement, a Signature Payment of
US$450,000 to the Company is now being processed by BCM (being the US$500,000
Signature Payment less the US$50,000 deposit already paid). A further update
will be made on receipt of the Signature Payment, which is expected in the
next few days.

 

Expenditure against the US$4 million funding has already commenced, with
approximately US$72k received to support camp upgrades and ongoing technical
studies ahead of the application for an exploitation licence in 2024. Drilling
is expected to resume at Bibemi in Q1-2024, with a strong focus on expanding
the resource inventory at the Bakassi Zone 1 prospect, where the Company has
already announced a maiden Mineral Resource Estimate of 305,000 ounces ('oz')
grading 2.19 grammes per tonne ('g/t') gold ('Au') in the JORC Inferred
category, within the limit of a US$1,800/oz gold price pit shell, and an
additional JORC Exploration Target of between 1.5 and 2.2 million tonnes at
grades ranging from 1.10 to 2.10 g/t for between 53,000 and 148,000 oz of Au
(announcement dated 12 December 2022). Further details on the planned drilling
programme will be announced in due course.

 

Execution of the Mbe Earn-In Agreement is anticipated later in January 2024.

 

Competent Persons Statement

The information in this release that relates to Exploration Results has been
compiled by Claire Bay (Executive Director, Exploration and Business
Development). Claire Bay (MGeol, CGeol) is a Competent Person as defined in
the JORC code and takes responsibility for the release of this information.
Claire has reviewed the information in this announcement and confirms that she
is not aware of any new information or data that materially affects the
information reproduced here, and that the material assumptions and technical
parameters that underpin the Bibemi Mineral Resource Estimate continue to
apply.

 

 

** 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 a maiden Resource of 305,000 oz Au at
2.19g/t in the JORC Inferred category at the 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 project by funding a Signature payment of US$500k, up
to US$4m in exploration expenditure and JORC resource-based success payments.
A similar deal at Mbe (part of the Central Licence Package) is expected to be
completed before the end of the current month.

 

At the more advanced Senala gold project in Senegal, AGEM Senegal
Exploration Suarl ('AGEM'), a wholly-owned subsidiary of Managem Group, has
earned an initial 51% beneficial interest in the Senala Exploration Licence by
spending US$4 million and has the option to spend up to a further US$4
million by 17 February 2024 to earn an additional 19% interest in the
licence. 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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