Sale agreement for the Niou project in Burkina Faso has been completed. Mako Gold announced to have received full payment of US$700 000 from Nord Gold SE over the sale of Niou Permit and Niou Sud Permit.
Under the terms of the Sale Agreement, Mako has received US$700 000 upfront cash consideration for the sale. In addition, Mako retains a 1% Net Smelter Royalty if Nordgold discovers a NI 43-101 compliant resource of at least 2Moz gold and advances the resource to production. Nordgold has the right to purchase the NSR at any time for US$4.5 million.
The divestment of the Niou Project in Burkina Faso allows Mako to focus its exploration efforts and capital on its flagship Napié Project and Korhogo Project in Côte d’Ivoire.
“Completion of the Sale Agreement with Nordgold bolsters our healthy balance sheet and will contribute to our aggressive exploration programs. We are pleased to have retained a 1% NSR on the Niou Project leaving Mako some upside to our gold discovery. Proceeds from the sale, in addition to the proceeds of our recent placement, will be applied to our highly prospective projects in Côte d’lvoire as we move towards and beyond our upcoming Maiden Resource Estimate at the Napié Project, and as we shortly embark on our maiden drilling program at Korhogo,” said Mako’s MD Peter Ledwidge.
The Niou Project is located within the Goren Greenstone Belt, in the central part of Burkina Faso. It is 50km north of Burkina Faso’s capital Ouagadougou it is easily accessed by a good road system. Mako announced a gold discovery from its RC maiden drilling program in January 2019.
The RC drilling program was designed to test two targets (Target A and B) within a broad (1 to 2km wide) zone of shearing associated with a major regional fault and coincident with a gold soil anomaly along a 7km long strike. Target A contains a 2km-long by 1km-wide main gold artisanal mining site, where artisanal miners are mining to depths up to 50m suggesting high-grade mineralisation is present in the area.