Oriole Resources has provided an update on its Senala gold project in Senegal, where JV partner IAMGOLD Corporation has the option to spend up to US$8 million to earn a 70% interest.
The Company has received a notice from IAMGOLD confirming that it has duly exercised the First Option outlined in the Option Agreement dated 28 February 2018 by incurring expenditures more than US$4 million within the first four years of the Agreement.
Therefore, subject to the Company completing a review of these expenditures, IAMGOLD will acquire a 51% interest in Senala.
IAMGOLD has also confirmed that it intends to proceed with the Second Option of the Agreement whereby it has an option, at its election, to complete a further US$4 million of expenditure within a further two-year period to earn an additional 19% interest in Senala for an aggregate 70% interest in the Project.
Tim Livesey, CEO of Oriole, commented:
“IAMGOLD’s notification that it has reached the U$4 million expenditure threshold and is moving to a 51% position at Senala is reflective of the excellent results we have seen coming out of the Year 4 exploration programme at the Project. We will be engaging with IAMGOLD to move through the process of formalising the new ownership arrangements and discussing the future exploration plans.”