West Africa Merger Update

RNS Number : 6309X

Panthera Resources PLC

01 September 2020

 

1 September 2020

Panthera Resources PLC

(Panthera or the Company)

West Africa Merger Update

The Board of Panthera is pleased to announce that it has completed the divestment of its interest in the Labola gold project to Moydow Holdings Limited (Moydow).  Furthermore, the divestment of the Kalaka gold project to Moydow has been delayed and is now anticipated to be completed later in September in order to finalise the remaining applicable conditions precedent.

Following the completion of the Lebola divestment, Panthera now holds a 50% interest in Moydow which will increase to 54.5% later later in September upon completion of the Kalaka divestment.  Importantly, Panthera now has a significant ownership interest in Moydow and ongoing participation in any success from the projects held by Moydow.

On 22 July 2020, Panthera announced that it has entered into a conditional sale and purchase agreement (Agreement) to divest of its interests in the Labola gold project in south west Burkina Faso and the Kalaka gold project in south west Mali to Moydow.  

Moydow is earning an interest in three exploration licences prospective for gold at the southern end of the Kushaka Schist Belt in Nigeria.  A drilling programme at Moydow's Nigerian projects is anticipated to commence shortly.

Panthera believes that Moydow's proposed work programme will confirm the historical drilling at Labola to deliver a JORC compliant mineral resource estimate.  Furthermore, the proposed infill and step-out drilling has the potential to materially increase the overall resource base.

At Kalaka, previous drilling has identified a very large-scale gold system.  Moydow intends to undertake additional IP surveying and subsequently to drill test the best anomalies identified by this work, along with a 1,000m by 150m zone of intense artisanal mining activity that is currently undrilled, with the aim of defining higher grade parts of the mineralisation.

Panthera will retain 100% of its interests in the Naton and Bassala gold projects and intends to progress these separately.  Further information on the planned work programmes at Naton and Bassala will be provided in the ordinary course.

Commenting on the divestment, Mark Bolton, Managing Director of Panthera said:

"The merger of our West African assets with Moydow initiates an exciting period for Panthera. 

With the spin-out of Lebola into Moydow, our shareholders now have exposure to seven highly prospective gold projects in four countries.  Eight of nine assets in the Panthera portfolio have ore grade mineralisation evidenced through historical shallow mining activity and six of these projects have deeper ore grade drilling intersections.

The Company has a clear objective to grow shareholder value underpinned by momentum in our field activities in Africa.  In India, with the recent lifting of lockdown restrictions, we are also ramping up our efforts to resolve the licensing at our world class Bhukia gold project. "

Enquiries

Panthera Resources PLC

Mark Bolton (Managing Director)

[phone]

Nominated Advisor and Broker

RFC Ambrian

[phone]

Rob Adamson

Bhavesh Patel

Charlie Cryer

Qualified Person

The technical information contained in this disclosure has been read and approved by Antony Truelove (BSc (Hon), MAusIMM, MAIG), who is a qualified geologist and acts as the Competent Person under the AIM Rules - Note for Mining and Oil & Gas Companies.  Antony Truelove is the COO of Panthera Resources PLC.

For more information visit www.pantheraresources.com

Market Abuse Regulation (MAR) Disclosure

Certain information contained in this announcement would have been deemed inside information for the purposes of Article 7 of Regulation (EU) No 596/2014 until the release of this announcement.

Forward-looking Statements

This news release contains forward-looking statements that are based on the Company's current expectations and estimates. Forward-looking statements are frequently characterised by words such as "plan", "expect", "project", "intend", "believe", "anticipate", "estimate", "suggest", "indicate" and other similar words or statements that certain events or conditions "may" or "will" occur. Such forward-looking statements involve known and unknown risks, uncertainties and other factors that could cause actual events or results to differ materially from estimated or anticipated events or results implied or expressed in such forward-looking statements. Such factors include, among others: the actual results of current exploration activities; conclusions of economic evaluations; changes in project parameters as plans continue to be refined; possible variations in ore grade or recovery rates; accidents, labour disputes and other risks of the mining industry; delays in obtaining governmental approvals or financing; and fluctuations in metal prices. There may be other factors that cause actions, events or results not to be as anticipated, estimated or intended. Any forward-looking statement speaks only as of the date on which it is made and, except as may be required by applicable securities laws, the Company disclaims any intent or obligation to update any forward-looking statement, whether as a result of new information, future events or results or otherwise. Forward-looking statements are not guarantees of future performance and accordingly undue reliance should not be put on such statements due to the inherent uncertainty therein.

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