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.
"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.