THE BOURSE WHISPERER: Middle Island Resources (ASX: MDI) informed the market that Vancouver-based Tajiri Resources Corporation (TSXV: TAJ) has exercised its option to fully acquire Middle Island’s Reo gold project in Burkina Faso, West Africa.
Middle Island said the completion of the transaction resulted from Tajiri’s payment to Middle Island of the final US$150,000 Option Extension and Exercise Fee.
The company explained that the transaction collectively comprised a combination of a US$335,000 cash payment and five million fully paid TAJ ordinary shares, at the time representing around eight per cent of Tajiri’s register on a fully diluted basis.
The deal sees Middle Island shareholders retain exposure to the Reo gold project via the TAJ shares, along with a residual 2 per cent NSR production royalty that Tajiri may acquire at any time for US$5 million.
The TAJ shares also provide Middle Island shareholders exposure to Tajiri’s gold exploration projects in Guyana, South America.
“Middle Island welcomes Tajiri’s commitment to the Reo gold project and looks forward to facilitating the orderly transfer of the exploration permits and other assets in Burkina Faso, once registration of Tajiri’s local entity is finalised,” Middle Island Resources said in its ASX announcement.