Nexus Gold has signed a definitive agreement with Precision Resources, which provides the company with the right to acquire up to a 100% interest in the Niangouela gold concession, located in Burkina Faso, West Africa.
Under the agreement, Nexus will get the option to acquire a 90% interest in the concession, against a consideration of $370,000 and issuance of 600,000 common shares over a three year period.
After purchasing a 90% interest in the Niangouela concession, Nexus will get an additional option to acquire the remaining interest by paying $1m.
It also requires paying 1% net smelter returns royalty to Precision Resources after complete acquisition of the property.
The 178km2 Niangouela concession is situated in the Boromo Greenstone Belt near to the Kalsaka deposit.
The property has one major orpaillage (artisanal workings) and is accessible via road.
Nexus Gold president and CEO Peter Berdusco said: "We are very pleased to add the Niangouela gold concession to our growing portfolio. It's location is close to our Bouboulou project, so dedicating resources makes good logistical and fiscal sense.
"We look forward to beginning our exploration work there as historical data shows excellent potential.”
At the site 556 pits and 11 trenches have been excavated and 1,137 samples have been collected to date.
Earlier programmes at the concession identified a zone which runs east-north-east and west-south-west occurs in the south central part of the concession.
Excavation at this zone recovered gold in soil samples up to 34g/t Au, rock samples have returned values up to 18g/t Au with trenching returned values of 4.85g/t Au over 10m.
Nexus took rock samples from this zone recently, which returned values from 1.12g/t Au to 2.49g/t Au.
The transaction is subject to customary closing conditions, including the approval of the TSX Venture Exchange.
All the issued securities associated with this transaction are constrained by a four month and one day statutory hold period.