Nexus Gold signs LoI to earn up to 100% of Rakounga gold property, Burkina Faso


Nexus Gold has signed a letter of intent (LoI) to acquire the right to earn up to 100% interest in Belemyida SA’s Rakounga gold property in Burkina Faso, West Africa.

Under the agreement, Nexus will have the option to offer $400,000 and issue 575,000 common shares over three years in exchange for a 90% interest in the property.

Covering 250km², the property is contiguous to Nexus Gold’s Bouboulou gold concession.

Rakounga gold property hosts Bouboulou 1 gold showing, which is the southern extension of the Bouboulou 2 trend and is an active orpaillage with shaft workings that stretch down around 80m. 

Nexus Gold president and CEO Peter Berdusco said: "The acquisition allows us to follow the Bouboulou 2 and Pelatanga-Rawema trends to the south-west.

"There is significant artisanal activity in this new area, which indicates gold mineralisation continues along the established trends for some distance."

"This addition is important when you consider how this might influence the goal of establishing a resource at Bouboulou.

“There is significant artisanal activity in this new area, which indicates gold mineralisation continues along the established trends for some distance.”

Once a 90% interest is acquired in the property, Nexus will have the option to buy the remaining 10% interest by paying $1m, while Belemyida will retain a net smelter return royalty of 1%.

The deal is subject to several conditions, including negotiation of definitive agreements, approval of the TSX Venture Exchange, and other terms.