Acacia completes sale of royalty over Burkina Faso mine
JOHANNESBURG (miningweekly.com) – Embattled gold miner Acacia Mining has completed the sale of an existing 2% net smelter royalty over the Houndé mine, in Burkina Faso, for $45-million.
The LSE-listed company in December said it was selling the royalty to Canadian miner Sandstorm Gold after its three producing gold mines in Tanzania were hit by changes in mining laws that have dented the investment appeal of companies operating in countries such as South Africa and Tanzania.
The royalty covers the Kari North and Kari South tenements, representing about 500 km2 of the Houndé property package.
Nearly the entire Houndé mineral reserve of 2.1-million ounces is located on the Kari North and Kari South tenements, including the Vindaloo deposit and most of the Bouéré deposit.
TSX-listed Sandstorm believes the acquisition will provide it with a number of upsides, including immediate cash flow, as commercial production was announced on October 31, 2017.
The Houndé mine is expected to produce 235 000 oz/y of gold, on average, over the first four years of operations.
The mine has an initial ten-year mine life based on the current mineral reserves.
Further, Endeavour Mining, which operates the mine, has set a discovery target at Houndé of 2.5-million to 3.5-million ounces of gold over the next four years with $40-million in budgeted expenditures from 2018 to 2021.
A number of the high-priority targets are on the Sandstorm royalty ground.
Sandstorm CEO Nolan Watson noted that the Houndé royalty was a natural fit for the company’s portfolio, as the asset met all of the criteria that the company looked for in an acquisition.
“The area that applies to the royalty is one of the largest prospective land packages in Sandstorm’s royalty portfolio and Endeavour has committed tens-of-millions of dollars in exploration spending in the coming years to aggressively search for new ore. Sandstorm will be a direct beneficiary of that work,” he added.
Comments
Press Office
Announcements
What's On
Subscribe to improve your user experience...
Option 1 (equivalent of R125 a month):
Receive a weekly copy of Creamer Media's Engineering News & Mining Weekly magazine
(print copy for those in South Africa and e-magazine for those outside of South Africa)
Receive daily email newsletters
Access to full search results
Access archive of magazine back copies
Access to Projects in Progress
Access to ONE Research Report of your choice in PDF format
Option 2 (equivalent of R375 a month):
All benefits from Option 1
PLUS
Access to Creamer Media's Research Channel Africa for ALL Research Reports, in PDF format, on various industrial and mining sectors
including Electricity; Water; Energy Transition; Hydrogen; Roads, Rail and Ports; Coal; Gold; Platinum; Battery Metals; etc.
Already a subscriber?
Forgotten your password?
Receive weekly copy of Creamer Media's Engineering News & Mining Weekly magazine (print copy for those in South Africa and e-magazine for those outside of South Africa)
➕
Recieve daily email newsletters
➕
Access to full search results
➕
Access archive of magazine back copies
➕
Access to Projects in Progress
➕
Access to ONE Research Report of your choice in PDF format
RESEARCH CHANNEL AFRICA
R4500 (equivalent of R375 a month)
SUBSCRIBEAll benefits from Option 1
➕
Access to Creamer Media's Research Channel Africa for ALL Research Reports on various industrial and mining sectors, in PDF format, including on:
Electricity
➕
Water
➕
Energy Transition
➕
Hydrogen
➕
Roads, Rail and Ports
➕
Coal
➕
Gold
➕
Platinum
➕
Battery Metals
➕
etc.
Receive all benefits from Option 1 or Option 2 delivered to numerous people at your company
➕
Multiple User names and Passwords for simultaneous log-ins
➕
Intranet integration access to all in your organisation