REG - Oriole Resources PLC - Strategic Update – Eastern CLP Gold Project

Oriole ResourcesAnnouncement

11/04/2023 07:00

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RNS Number : 7012V  Oriole Resources PLC  11 April 2023

Oriole Resources PLC

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

 

Strategic Update - Eastern CLP Gold Project

 

Oriole Resources (AIM: ORR), the AIM-quoted exploration company focussed on
West Africa, provides a strategic update on its five Eastern CLP licences in
central Cameroon, which form part of the wider Central Licence Package
('CLP').

 

Oriole has a 90% interest in the Eastern CLP licences (Tenekou, Niambaram,
Pokor, Ndom, and Mbe, together the 'Project'), and anticipates that this would
grow to a 100% ownership position after resource definition, when contribute
or dilute provisions will become active. Oriole confirms that it is
transferring its interest in the Project into a sub-holding company ('NewCo'),
in order to enable project-level investment. This will enable the Group to
advance exploration at the Project whilst minimising equity dilution for
shareholders at the Company level.

 

The Company has signed a letter of engagement with a Canadian investment
banking firm to secure US$1 million of project-level exploration financing in
return for a 10% non-carried interest in NewCo. The investment will be
earmarked exclusively for gold exploration, funding the Company's proposed
work programme on the Project, and enabling the Company to pursue other
funding opportunities to further lithium exploration within the CLP.

 

Closing of the financing is expected in Q2-2023. Notwithstanding the
engagement of an adviser, there can be no certainty that financing will be
secured or as to the final terms of such financing.

 

About the CLP

 

The Eastern CLP licences were granted for their first term in February 2021.
Work to date has identified multiple 2-3 kilometre ('km') long gold-in-soil
anomalies across the Project in addition to a 12.5km-long zone of anomalism at
Mbe. Follow-up rock-chip sampling at Mbe recently returned up to 134.10
grammes per tonne gold from a cross-cutting structural corridor that extends
over a strike length of 3km and over a width of at least 70 metres
(announcement dated 27 March 2023).

 

 

 

** 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 / Rachael Brooks

 Grant Thornton UK LLP                    Tel: +44 (0)20 7383 5100
 Samantha Harrison / George Grainger / 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 recently reported a maiden Resource of
305,000 oz Au 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. At the more advanced Senala
gold project in Senegal, IAMGOLD is the operator and has the option to
spend US$8 million to earn a 70% interest. Under the terms of the Option
Agreement, IAMGOLD has met its first commitment by spending US$4
million within an initial four years and has therefore earned an initial 51%
beneficial interest in Senala. On 20 December 2021, IAMGOLD announced that it
had signed a definitive agreement to sell its portfolio of projects in West
Africa, including its interest in Senala, to Managem Group. IAMGOLD expects
the transaction to close in Q3-2023. 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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