Mako Gold Ltd (ASX:MKG) has received strong validation of its strategy through an agreement with proven West African gold developer and producer Perseus Mining Limited (ASX:PRU) (TSE:PRU) (OTCMKTS:PMNXF) to exchange its 39% interest in the Napie Gold Project for an equity holding of 5.1%.
It means Mako will own 90% of the Napie project in the West African Birimian Greenstone Belts, which host more than 70 gold deposits in excess of one million ounces.
The company plans to deliver a maiden mineral resource estimate later this year as drilling results continue to validate its methodical approach.
Perseus a cornerstone investor
Mako’s managing director Peter Ledwidge said of the deal: “We are pleased to welcome proven West African gold developer and producer Perseus as a cornerstone shareholder in Mako.
“They have proved to be supportive JV partners at Napie and we look forward to their ongoing support as a shareholder of Mako.”
The transaction validates Mako’s systematic exploration and growth strategy that aims to extend existing high-grade mineralisation, test multiple high priority regional prospects and to support a future maiden mineral resource estimate.
In addition, it is an endorsement of Mako’s 100%-owned Korhogo Project, located about 30 kilometres from Barrick’s Tongon Mine, and Mako’s exploration/management team.
Ledwidge said: “The consolidation of the Napie Gold Project to 90% ownership is a major milestone for Mako, simplifying the existing JV and providing our shareholders with a clearer path to the commercialisation of this asset.
“This transaction removes uncertainty around the future JV milestones and project equity/funding and is a testament to the Mako team for their exploration success at Napie and strategy to unlock further value.”
Under the agreement, Mako will acquire Perseus’ existing 39% interest in Napie and exchange it for an initial equity consideration and two deferred milestone payments.
That equity consideration will see Perseus become a cornerstone investor in Mako itself with a 5.1% holding.
The two milestone payments are contingent on the delineation of a 1 million-ounce measured and indicated resource (representing a minimum of 25 million tonnes at a minimum grade of 1.25 g/t gold) at Napie, and the first sale of gold dore or ore extracted from Napie.
Most recently, Mako expanded the Tchaga prospect at Napie with further reverse circulation (RC) and diamond drilling returning up to 17 metres at 3.06 g/t gold from 129 metres and 9.85 metres at 6.63 g/t from 213.15 metres, including 2 metres at 30.15 g/t.
– Daniel Paproth