Panthera Resources plc (LON:PAT) has announced that it has completed the divestment of its interest in the Labola gold project to Moydow Holdings Limited (Moydow). Furthermore, the divestment of the Kalaka gold project to Moydow has been delayed and is now anticipated to be completed later in September in order to finalise the remaining applicable conditions precedent.
Following the completion of the Lebola divestment, Panthera now holds a 50% interest in Moydow which will increase to 54.5% later later in September upon completion of the Kalaka divestment. Importantly, Panthera now has a significant ownership interest in Moydow and ongoing participation in any success from the projects held by Moydow.
On 22 July 2020, PAT announced that it has entered into a conditional sale and purchase agreement (Agreement) to divest of its interests in the Labola gold project in south west Burkina Faso and the Kalaka gold project in south west Mali to Moydow.
Moydow is earning an interest in three exploration licences prospective for gold at the southern end of the Kushaka Schist Belt in Nigeria. A drilling programme at Moydow’s Nigerian projects is anticipated to commence shortly.
The company believes that Moydow’s proposed work programme will confirm the historical drilling at Labola to deliver a JORC compliant mineral resource estimate. Furthermore, the proposed infill and step-out drilling has the potential to materially increase the overall resource base.
At Kalaka, previous drilling has identified a very large-scale gold system. Moydow intends to undertake additional IP surveying and subsequently to drill test the best anomalies identified by this work, along with a 1,000m by 150m zone of intense artisanal mining activity that is currently undrilled, with the aim of defining higher grade parts of the mineralisation.
The company will retain 100% of its interests in the Naton and Bassala gold projects and intends to progress these separately. Further information on the planned work programmes at Naton and Bassala will be provided in the ordinary course.
Commenting on the divestment, Mark Bolton, Managing Director of Panthera Resources said:
“The merger of our West African assets with Moydow initiates an exciting period for Panthera.
With the spin-out of Lebola into Moydow, our shareholders now have exposure to seven highly prospective gold projects in four countries. Eight of nine assets in the Panthera portfolio have ore grade mineralisation evidenced through historical shallow mining activity and six of these projects have deeper ore grade drilling intersections.
The Company has a clear objective to grow shareholder value underpinned by momentum in our field activities in Africa. In India, with the recent lifting of lockdown restrictions, we are also ramping up our efforts to resolve the licensing at our world class Bhukia gold project.”