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.
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.