By: Creamer media

In a media release, Turaco says this divestment is consistent with the rationalisation of its exploration projects in the West African country to focus its resources on the Afema gold project, while retaining upside exposure through shareholdings in listed entities.

Santa Fe will issue 12-million of its shares to Turaco as payment for the Eburnea project.

It will also issue to Turaco four-million performance rights that convert into fully paid ordinary shares in Santa Fe upon meeting certain milestones.

In addition to customary conditions, the sale is conditional upon Santa Fe shareholders approving the transaction and Santa Fe completing an equity raising of at least A$1-million.

Santa Fe has confirmed in a separate media statement that it has received binding commitments to undertake a placement of 24-million fully paid ordinary shares at $0.05 a share to raise $1.2-million, before costs.

“Through a cornerstone shareholding in Santa Fe, Turaco will continue to benefit from any exploration success within the Eburnea project by Santa Fe, while not distracting Turaco’s focus on the Afema project.

“This agreement follows other recent divestments of noncore permits by Turaco that have resulted in the generation of significant value for Turaco,” says Turaco MD Justin Tremain.

Turaco has delineated a Joint Ore Reserve Committee-compliant resource estimate of 3.55-million ounces at Afema, which it says is one of the largest undeveloped gold projects in West Africa.