Gold miner Resolute Mining will acquire a 15 per cent stake in Orca Gold through a share placement, bolstering the ASX-listed company’s presence in Africa.
Resolute will pay $22.5 million for 32.4 million shares in Orca at $C0.675/share to secure the investment.
Canada-based Orca is focused on the acquisition, exploration and development of mineral properties in North and West Africa.
Orca’s principal asset is a 70 per cent interest in the Block 14 gold project in northern Sudan, a prospect regarded as one of the leading gold developments in Africa.
Resolute managing director and chief executive John Welborn described the investment in Orca as opportunistic and part of the company’s ambitious growth strategy.
“Orca is a first mover in a region which is host to the largest gold rush seen in Africa in centuries,” Welborn said.
“Sudan’s increasing political stability and highly prospective under explored geology has seen the country rapidly emerge as the second largest producer of gold in Africa.”
Gold production in Sudan of more than 3Moz is sourced from small scale and artisanal mining activity, according to Welborn.
“Similar to Resolute’s entry into Ghana and Tanzania in the late 1990s, we are convinced this region of Africa will soon host new modern gold mines,” Welborn said.
Block 14’s mineral resource, estimated in compliance with the Canadian NI 43-101 standard, was updated in January to include an indicated resources of 3.05Moz of gold and an inferred resource of 752,000oz.