Tawana acquires Liberian land package
THE BOURSE WHISPERER: West Africa-focused Tawana Resources has acquired, what it described to be, “a highly prospective land package” located in Sinoe County, south-eastern Liberia.
Called the Sinoe project, the acquisition is considered by Tawana to be an opportunity for the company to explore prospective Birimian geology in Liberia along strike to an emerging gold province as well as being an extension of its commitment to growth in West Africa.
Tawana signed a binding Heads of Agreement with privately-owned Liberian company Global Mineral Investments for an option to purchase outright the mineral exploration licence over the Sinoe project.
Under the terms of the agreement Tawana has the option to purchase the mineral exploration licence outright once it has met the following terms and conditions:
– US$10,000 Option payment to secure exclusivity – PAID;
– US$40,000 Execution payment on successful due diligence – PAID; and
– US$50,000 Execution payment within 6 months of the commencement of exploration or announcing to market a significant exploration target.
Tawana will fund exploration during the first year, after which it has the right to purchase the licence outright or walk away from the deal.
Should it opt to purchase the licence outright it will do so under the following terms:
– US$350,000 payment and 6 million shares in the company;
– US$1 million payment at announcement of one million ounce JORC compliant resource;
– Additional US$1 million payments for each additional 500,000 ounce JORC compliant resource announced to market up to a maximum JORC compliant resource of 2.5 million ounces; and
– US$5 million payment at pouring first gold from a mining operation within the licence area.
The Sinoe mineral exploration licence covers 400 square kilometres of Birimian aged rocks along the Dugbe Shear, which is considered to be one of the most prospective gold mineralised structures currently being explored in Liberia.
The project area is 25 kilometres along strike from AIM-listed Hummingbird’s 0.8 million ounce Dugbe project and 40 km along strike from the Bukon Jedeh project of ASX-listed compatriot Equator Resources.
“Similar structural targets have been defined in the government regional aeromagnetics data over the Sinoe project area,” Tawana resources said in its announcement to the Australian Securities Exchange.
“The area is characterised by numerous artisanal gold workings observed in the field during recent site due diligence activities.
“The area is also characterised by numerous gold, quartzite, graphite and manganese occurrences on the USGS Geological map of Liberia; all favourable indications for gold prospectivity.”
Tawana has commenced an aggressive field sampling and mapping program at Sinoe with field teams on site carrying out soil sampling traverses over high priority target areas.
The company is also planning to undertake blanket, wide spaced soil traverses within the license area and closer spaced soil traverses over high priority targets including hard-rock artisanal workings.
Tawana said it expects this initial soil sampling data will delineate high priority targets for drilling in the early part of 2012.