Awale says Newmont poised to acquire minority stake in West Africa project

Awale Resources Ltd. [ARIC-TSXV] said Newmont Ventures Ltd., a unit of Newmont Corp. [NGT-TSX, NEM-NYSE, ASX, PNGX] has provided notice of its intention to acquire a 10% minority interest in the Odienne Project in Cote d’Ivoire, West Africa. The minority interest is held is currently held by the shareholders of Africa New Geological Technologies Cote d’Ivoire SARL. This notice is in line with the exploration agreement signed back in May 27, 2022.

Under that agreement, Newmont pledged to make a US$500,000 strategic investment in Awale by way of a private placement. It also agreed to make up to US$15 million in staged exploration payments in order to earn a 75% interest in the Odienne Project. The latest update follows Newmont’s recent completion of Phase 1 of its earn-in, which has vested it with a 51% controlling interest in the joint venture.

“This joint venture level investment places a spotlight in the prospective nature of the Odienne District, highlighting not only the joint venture, but Awale’s 100%-owned ground in the district,’’ said Awale Resources CEO Andrew Chubb. “We look forward to our continued partnership with Newmont alongside this increased stake in the joint venture project and delivering new results from our properties along strike from the joint venture ground.’’

Awale shares were unchanged at 44.5 cents and trade in a 52-week range of $1.10 and 10 cents.

The greater Odienne project lies in the northwest Denguele Region of Cote d’Ivoire, close to the borders of Mali and Guinea. The project covers approximately 1,600 square kilometres on four permits, two of which (Odienne East and Odienne West) are held under a joint venture with a unit of Newmont.

Awale has said the Odienne Project has the potential to deliver “Tier One” gold and copper assets from the Empire corridor and Sceptre target area, respectively. Awale also considers the Odienne project to contain significant potential for the discovery of the first major Iron Oxide Copper Gold (IOCG) deposit in West Africa.

Awale currently undertakes exploration activities in the underexplored regions of Cote d’Ivoire. The company’s exploration success to date has culminated in a fully-funded earn-in joint venture with Newmont, covering one permit and one application (the Odienne Project joint venture), within the greater Odienne Copper-Gold Project in northwest Cote d’Ivoire where three gold, gold-copper and gold-copper molybdenum discoveries have been made.  The company said the Sceptre East and Charger discoveries offer significant potential for growth with future discovery and resource development. The Odienne Project joint venture has multiple pipeline prospects with similar geochemical signatures to Iron Oxide Copper Gold and intrusive -related mineral systems.

The 400 square kilometers of granted tenure and 400 square kilometres under application remain underexplored and present substantial upside potential, Awale has said.