Oriole's partner on Senala agrees to sell up

21st Dec 2022 13:32

(Sharecast News) - West Africa-focussed gold explorer Oriole Resources reported on Wednesday that its partner on the Senala gold project in Senegal, IAMGOLD Corporation, has signed a definitive deal to sell its portfolio of projects in Senegal, Mali and Guinea to Managem Group for $282m.

The AIM-traded firm said the sale included IAMGOLD's interest in the option agreement on Senala, where it recently earned a 51% initial interest in Senala by spending $4m over four years, and could earn up to a further 19% by spending an additional $4m before the end of February 2024.

"Oriole notes that the transaction is subject to certain regulatory approvals as well as other closing conditions, and IAMGOLD expects the transaction to close early in the third quarter of 2023," the board said in its statement.

"Oriole is currently in discussions with IAMGOLD as to the effect of the transaction and the timing of further exploration at Senala, and will update the market in due course."

At 1205 GMT, shares in Oriole Resources were down 8% at 0.18p.

Reporting by Josh White for Sharecast.com.