Resolute Mining buys 15% interest in Orca Gold

29 May 2018 (Last Updated May 29th, 2018 13:48)

Resolute Mining has acquired a 15% interest in Canadian mining firm Orca Gold by making a A$22.5m ($17m) investment in the company.

Resolute Mining has acquired a 15% interest in Canadian mining firm Orca Gold by making a A$22.5m ($17m) investment in the company.

The investment is part of a deal reached to subscribe for 32.4 million new shares in Orca and is expected to be made in two equal tranches comprising cash and Resolute shares.

Orca has operations in Sudan, with a current mineral resource of 3.8 million ounces of gold.

“Our ambition is to participate in the development of a major new gold mining district.”

The company holds a 70% ownership interest in the Block 14 gold project located in northern Sudan and is currently engaged in the completion of a feasibility study on a development aimed at delivering production of more than 200,000oz of gold per year.

Resolute Mining managing director and CEO John Welborn said: “Orca is a first mover in a region which is host to the largest gold rush seen in Africa in centuries.

“We believe the combination of our mutual exploration and development expertise and resources will materially advance the existing asset position and advance regional exploration and development opportunities.

“Ultimately our ambition is to participate in the development of a major new gold mining district consistent with Resolute’s Golden Pride legacy as a successful pioneer of the gold mining industry in East Africa.”

The parties will also collaborate on opportunities in Sudan, Côte D’Ivoire, and elsewhere in Africa, including the identification and development of orebodies.

Resolute will subscribe for 16,182,480 shares in Orca in the first tranche, while the second tranche will involve the subscription of an additional 16,182,480 shares.