logo-loader
viewPerseus Mining Ltd

Perseus Mining signs option to purchase prospecting licence adjacent to Edikan Gold Mine

90%-owned subsidiary Perseus Mining Ghana (PMGL) has purchased an option to acquire the Agyakusu prospecting licence PL 2/177 from Adio-Mabas Ghana Limited.

Perseus Mining Ltd - Perseus Mining signs option agreement to purchase prospecting license adjacent to Edikan Gold Mine
Detail of altered and mineralised granite on the property

Perseus Mining Ltd (ASX:PRU) has signed an option agreement with local Ghanian company Adio Mabas Ghana Ltd to acquire the 23.85 square kilometre Agyakusu prospecting licence (PL) in Ghana.

PL 2/177 adjoins Perseus’ Edikan mining leases and is between two and eight kilometres from the Edikan processing facility.

Subject to completion of customary conditions, Perseus has the right to acquire 100% of the Agyakusu prospecting licence for US$600,000 over a three-year period and a commitment to spend up to US$1.6 million on exploration during that period.

Shares have been up almost 9% to an intra-day high of 93 cents, which represents a new 12-month high.

“Exciting opportunity”

Managing director and CEO Jeff Quartermaine said: “Agyakusu represents an exciting opportunity to potentially extend the current six-year remaining mine life of our Edikan Gold Mine.

“The agreement is consistent with Perseus’ three-pronged organic growth strategy, which involves optimisation of our existing asset base, exploration adjacent to our existing infrastructure and developing an exploration and development pipeline of projects away from existing licence areas.

“We look forward to rapidly advancing the exploration on Agyakusu to determine what this exciting prospect yields.”

Artisanal activity on the Agyakusu tenement has exposed an extensive, mineralised granitic system similar to deposits being mined on the Edikan mining leases.

The acquisition is consistent with the company’s strategy to grow organically by exploring and potentially developing mineral resources within trucking distance of existing infrastructure.

Key earn-in terms

The company's 90%-owned Ghanaian subsidiary, Perseus Mining (Ghana) Limited (PMGL) is to make the following staged payments to the vendor:

  • US$25,000 on signing the option agreement;
  • US$175,000 on the satisfaction of customary conditions precedent;
  • US$100,000 at the end of the first year to extend the option by a year;
  • US$100,000 at the end of the second year to extend the option for a further year; and
  • US$600,000 to exercise the option at any time, less any of the above payments already made.

While it maintains the option to purchase the licence, PMGL is required to meet the following expenditure commitments:

  • Minimum US$400,000 in the first year of the option before withdrawal from the arrangement;
  • Cumulative $1,000,000 by the end of the second year, pro-rated if PMGL withdraws during the year; and
  • Cumulative $1,600,000 by the end of the third year, pro-rated if PMGL withdraws during the year.

Quick facts: Perseus Mining Ltd

Price: 1 AUD

ASX:PRU
Market: ASX
Market Cap: $1.17 billion
Follow

Add related topics to MyProactive

Create your account: sign up and get ahead on news and events

NO INVESTMENT ADVICE

The Company is a publisher. You understand and agree that no content published on the Site constitutes a recommendation that any particular security, portfolio of securities, transaction, or investment strategy is...

In exchange for publishing services rendered by the Company on behalf of Perseus Mining Ltd named herein, including the promotion by the Company of Perseus Mining Ltd in any Content on the Site, the Company receives...

FOR OUR FULL DISCLAIMER CLICK HERE

Watch

Perseus Mining reports 'another excellent quarter' with production up and...

Perseus Mining Ltd's (ASX:PRU) (TSE:PRU) (FRA:P4Q) (OTCMKTS:PMNXF) Jeff Quartermaine tells Proactive it's been 'another excellent quarter' for the group. "Production's up about 3% and costs down about 7% quarter on quarter. "This is the 11th consecutive quarter that we've produced very...

on 20/10/19

3 min read