Update on Senala Option Agreement

RNS Number : 2058C

Oriole Resources PLC

21 February 2022

 

 Oriole Resources PLC 

('Oriole Resources' or 'the Company' or 'the Group')

Update on Senala Option Agreement

Oriole Resources PLC (AIM: ORR), the AIM-quoted exploration company focussed on West Africa, is pleased to provide an update on its Senala gold project ('Senala' or the 'Project') in Senegal, where joint venture partner IAMGOLD Corporation ('IAMGOLD') has the option to spend up to US$8 million to earn a 70% interest (announcement dated 1 March 2018).

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 (the 'Agreement') by incurring expenditures in excess of 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."

** ENDS **

The information contained within this announcement is deemed to constitute inside information as stipulated under the retained EU law version of the Market Abuse Regulation (EU) No. 596/2014 (the "UK MAR") which is part of UK law by virtue of the European Union (Withdrawal) Act 2018. The information is disclosed in accordance with the Company's obligations under Article 17 of the UK MAR. Upon the publication of this announcement, this inside information is now considered to be in the public domain.  

For further information please visit www.orioleresources.com, @OrioleResources on Twitter, or contact:

Oriole Resources PLC Tim Livesey / Bob Smeeton / Claire Bay	Tel: [phone]
Blytheweigh (IR/PR contact) Tim Blythe / Megan Ray / Rachael Brooks	Tel: [phone]
Grant Thornton UK LLP Samantha Harrison / George Grainger / Ciara Donnelly	Tel: [phone]
Shard Capital Partners LLP Damon Heath / Erik Woolgar / Isabella Pierre	Tel: [phone]

Notes to Editors:

Oriole Resources PLC is an AIM-listed exploration company, operating West Africa. It is focused on early-stage exploration in Cameroon (Bibemi, Wapouzé and Central Cameroon projects) and the more advanced Senala gold project in Senegal, where IAMGOLD has the option to spend US$8 million to earn a 70% interest. The Company also has several interests and royalties in companies operating throughout Africa and Turkey that could deliver future cash flow, and it continues to assess new opportunities in both regions.

 

END

 

 

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