Newcrest West Africa Holdings has signed an agreement to sell its Séguéla project and its portfolio of 11 exploration tenements in Côte d’Ivoire to Roxgold for $30m.
Séguéla is located about 240km north-west of Yamoussoukro and approximately 480km north-west of Abidjan.
Around $21m has been invested in exploration and approximately 117,000m of drilling has been completed on the tenements that are located across prospective Birimian greenstone belts in the mining jurisdiction of Côte d’Ivoire.
Under the terms of the agreement, Roxgold will pay an upfront consideration of $20m cash to Newcrest and a deferred payment of $10m cash contingent on first gold production from the subject land package.
Newcrest managing director and CEO Sandeep Biswas said: “This outcome delivers value for Newcrest shareholders and provides what we believe to be the best way to maximise the potential of the asset for the benefit of our local employees, communities and Côte d’Ivoire.”
Newcrest will acquire prospective exploration permits covering 3,298km² in the mining jurisdiction of Côte d’Ivoire.
The flagship Séguéla project hosts a number of satellite opportunities and the Antenna deposit that consists of a mineral resource containing an inferred resource of 5.8Mt at 2.3 g/t Au for 430koz Au.
Newcrest discovered the Antenna deposit in 2016.
The company, through its 50% interest in a joint venture with Barrick in the south-east of Côte d’Ivoire, will retain exposure to exploration in the country.
Roxgold president and CEO John Dorward said: “This acquisition represents a meaningful addition to our growth pipeline, providing a key second asset, immediate additional resource upside and a large prospective land package all in an accretive transaction for Roxgold shareholders.”
Completion of the deal is subject to conditions precedent, including the Minister of Mines of Côte d’Ivoire approval and the renewal of the Séguéla exploration permit and is expected to take place in the June 2019 quarter.