Orbis Gold to cash in from tenements sale

THE BOURSE WHISPERER: Orbis Gold (ASX: OBS) has entered into a Sale and Purchase Agreement with Syndicated Metals (ASX: SMD) for the sale of the former’s interest in the Leichardt project area tenements, located in the Mount Isa region of north‐west Queensland.

The granted tenements and tenement applications subject of the agreement include:

–    A minority (41.3 per cent) interest in tenements within the West Leichardt Joint Venture – which include part of the Barbara copper‐gold deposit; and

–    Four additional 100 per cent‐owned tenements and tenement applications.

 

Orbis project areas in the Mount Isa region. Source: Company announcement

 

Orbis indicated the $1 million cash payment it is to receive for the sale of the tenements will be used to advance the company’s portfolio of gold exploration and development projects in Burkina Faso, West Africa as well as providing working capital.

Orbis recently announced the discovery of a new gold deposit at the company’s Natougou prospect in eastern Burkina Faso, where it is currently in the final stages of completing a drilling program for a maiden resource estimate.

Completion of the sale to Syndicated Metals is subject to conditions which include:

–    Approval being given by the Queensland Minister for Mines for transfer of the 100 per cent Orbis‐owned granted tenements to Syndicated Metals; and

–    Syndicated Metals entering into a legally binding agreement with Exco Resources Limited in respect of the sale of Application for Mineral Development License (MDL) 499 (1).

These conditions are to be satisfied within 60 days of the agreement.

“The sale of the Leichardt project area tenements by Orbis is aligned with its strategy of seeking to divest its tenement interests in the Mount Isa region or to advance exploration by third party funding,” Orbis Gold said in its ASX announcement.

“Following completion of the sale Orbis will retain an interest in two exploration project areas in the Mount Isa region comprising the Gregory (Orbis 100 per cent) and Boomara projects (Xstrata earning up to 80 per cent).

The Gregory and Boomara projects both target large‐scale iron‐oxide copper‐gold deposits within interpreted concealed (buried) extensions to Mount Isa Inlier stratigraphy.

“Exploration within the Boomara project area is currently being funded by Xstrata Mount Isa Mines under an Earn‐In and Joint Venture Agreement.”