Mining firm Cradle Arc has divested its non-core Kerboulé gold project in Burkina Faso through the sale of its subsidiary, Société Miniére de Kerboulé (SMK).
The Kerboulé project comprises the wholly-owned exploration licences of Arae and Gassel-Manere, where limited exploration work has been historically performed due to security concerns in the region.
Based on a non-JORC code compliant resource estimate in April 2015, Kerboulé has 6.2Mt of in situ mineralisation grading at 1.16g/t for 230,758oz Au.
Cradle Arc has received a notional fee of $1 from the buyer for the entire issued share capital of SMK.
According to the company, the purchaser will assume all ongoing operating costs and SMK’s liabilities.
The share transfer deal also requires Cradle Arc to provide a one-off payment of around $17,700 to the buyer.
The company noted that since the resource estimate, it could not complete further proposed exploration work due to the ‘deteriorating’ security situation in the area, where armed extremist groups have been operating.
In a statement, Cradle Arc said: “Accordingly, defining a path for further exploration through to potential development activities on both Arae and Gassel-Manere is not possible at this time.
“The lack of near term production potential in comparison to what the company considers much lower risk, higher return investment at the company’s Mowana mine has led to the disposal.”
In April this year, Cradle Arc signed an agreement that grants Singa Holdings Zambia an option to form a joint venture and/or acquire the entire issued share capital of Luiri Gold Mines, which holds its Matala and Dunrobin gold assets in Zambia.