Canyon buys Burnikabe parcel

THE BOURSE WHISPERER: Burkina Faso-focused gold play Canyon Resources has entered into an agreement with a Burkinabe vendor to purchase two additional exploration permits contiguous to its Derosa project.

The new permits, currently under application, represent an additional 385 square kilometres of exploration landholding.

The acquisition will increase Canyon’s Derosa project area to over 1,389sqkm covering six contiguous permits.

It will take the company’s total landholding to over 2,500sqkm in Burkina Faso.

 “The addition of these permits to the Derosa project further consolidates Canyon’s position as an explorer in Burkina Faso with three significant exploration projects; Tao, Taparko and Derosa,” the company said in its ASX announcement.

“The acquisition is consistent with Canyon’s strategy of continuing to selectively grow its exploration portfolio in Burkina Faso, whilst actively exploring its existing projects.”

Canyon will acquire 100% of the Bompela and Sapala permits, adding them to its Derosa project.

The acquisition will be made via an initial payment of US$50,000 on signing of the contract, and a series of payments over a three year period from the granting of the permits.

To gain 100% ownership of the two permits Canyon is required to pay the following consideration:

– US$50,000 at the time of the permits being granted;

– US$50,000 six months from the granting of the permits;

– US$60,000 on the 1st anniversary of the granting of the permits;

– US$60,000 on the 2nd anniversary of the granting of the permits; and

– US$80,000 on the 3rd anniversary of the granting of the permits.

The tranches are paid at Canyon’s election. If Canyon chooses not to complete one of the tranches it will hand back the rights to the permits.