REG - Panthera Resources - Restructure of Kalaka and Bassala Joint Ventures

Panthera ResourcesAnnouncement

06/06/2024 10:15

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RNS Number : 4211R  Panthera Resources PLC  06 June 2024

6 June 2024

 

Panthera Resources Plc

("Panthera" or "the Company")

 

Restructure of Kalaka and Bassala Joint Ventures

 

Panthera Resources Plc (AIM: PAT), the diversified gold exploration and
development company with assets in West Africa and India, is pleased to
announce that it has further restructured the joint venture agreements with
Golden Spear Mali SARL ("GSM") over the Kalaka ("Kalaka" or the "Kalaka
Project") and Bassala ("Bassala" or the "Bassala Project") gold projects in
Mali (together the "JV Projects").

 

Under the new JV agreements, Panthera's interest in the Kalaka and the Bassala
Projects has increased from 80% to 85% respectively with the remaining 15%
interest continuing to be owned by our local partner, GSM. Furthermore, GSM
will be entitled to a 'carry' of costs by Panthera until the commencement of
construction for the commercial development of mining operations.  Any carry
amount outstanding is to be repaid to the Company from profits distributed
from the future mining operations.  GSM is required to contribute its share
of the development costs or dilute its interest in the joint venture.

 

Commenting on the restructuring, Mark Bolton, Managing Director of Panthera
said:

 

"The Company is actively considering its strategic options over its West
African gold portfolio given the ongoing Bhukia arbitration proceedings.
Whilst the Company believes that the West African portfolio is highly
prospective, particularly in an improving gold price environment, exploration
activity continues to be curtailed due to the dilutionary impact on its
shareholders and therefore in the Bhukia arbitration.

 

The new joint venture agreements with GSM follow the recent completion of the
restructuring of the ownership of Kalaka.  With these changes now completed,
the Company is well positioned in its discussions with third parties to
potentially fund and or reorganise its ongoing ownership interest in the West
African gold assets.  Should these discussions prove successful, it may
provide a path for the Company to realise significant value from its West
African gold portfolio."

 

Amended Joint Venture Agreement Terms

 

The Company has entered into new joint venture agreements with GSM on the
Kalaka and the Bassala projects respectively.  The terms and conditions of
the new joint venture agreements are materially unchanged except for the
following:

1.         The parties acknowledge that the Company has met its 80%
earn-in expenditure commitments on each of the JV Projects under the
superseded joint venture agreements.

2.         The Company will increase its ownership interest in each of
the JV Projects from 80% to 85%.

3.         The Company shall contribute GSM's 15% of all future
expenditure on both JV Projects until the commencement of construction for the
commercial development of mining operations (the "Carry").

4.         GSM shall be required to repay the Carry amount from the
profits distributed from the future mining operations on the respective JV
Projects.

5.         The Company will make a one-off payment of US$10,000 and
issue 135,200 new ordinary shares of 1 pence each in the capital of the
Company ("Ordinary Shares") to GSM or its nominee.

 

GSM is not entitled to a Carry for the construction-development expenditure
and the failure of GSM to contribute 15% of this expenditure shall result in
the dilution of their ownership percentage in the applicable JV Project
according to standard industry formulae.

 

A separate announcement will be made once application has been made to the
London Stock Exchange for the new 135,200 new Ordinary Shares to be admitted
to trading on AIM ("Admission").

 

About the Kalaka Project

 

The Kalaka gold project, which is operated by Panthera, is situated in
southern Mali, 80km south of the 8 Moz Morila gold mine and 85km northwest of
the 6 Moz Syama gold mine (Resolute). Panthera believes the property has
large-scale potential.

 

Historical drilling has intersected impressive mineralization widths at the
K1A target within a very large 0.5g/t Au mineralization envelope. Drilling
intersections at K1A have included 249m @ 0.54g/t Au (to end of hole). The
tenement hosts some 45km of prospective geology and structures along strike
from K1A as defined by drilling, surface geochemical and geophysical surveys.

 

At the K1A target area, the Company's Competent Person Report (prepared by
Golder Associates Pty Ltd), which was disclosed in the Company's AIM Admission
Document, reported that drilling by past explorers defined a potential
endowment of 250,000 to 500,000 ounces. Furthermore, Golder Associates Pty Ltd
("Golder") reported that this represents an exploration target where further
infill drilling may lead to the estimation of a Mineral Resource.

 

More recently, follow-up work by Panthera including a re-examination of all
available drill data at K1A, confirmed the mineralised envelope that broadly
conforms to the potential endowment mentioned by Golder. This work identifies
an exploration target of between 0.5 Moz to 1 Moz gold.  Importantly, the
Company is yet to drill the northern extension of the mineralisation at K1A
together with several similar targets within the project area. Taken together,
these observations expand the exploration target to approximately 3 Moz of
gold.

 

About the Bassala Project

 

The Bassala project, which is also operated by Panthera, is located within the
highly gold-endowed Birimian volcano-sedimentary belt in southwestern Mali,
approximately 200km south of the capital city Bamako.

 

The belt hosts the Kalana (Endeavour Mining, 4Moz) and Kodieran (Wassoul'or,
2Moz) gold mines, both within a few kilometres of the Bassala project.  The
adjacent belt to the west is also well endowed with gold and hosts the Siguiri
(AngloGold Ashanti ("AngloGold"), 17Moz), Tri-K (Avocet Mining, 3Moz), Kobada
(African Gold Group, 3Moz), and Yanfolila (Hummingbird Resources, 2Moz) gold
mines.

 

Following the drilling campaign in June 2022, the Company completed a
comprehensive field assessment of the project. The assessment recognised five
prospects these being the Tabakorole Prospect, the Tabakorole East Prospect,
the Djelikourou North Prospect, the Djelikourou South Prospect and the Tagoua
Prospect where ongoing exploration is targeted.

 

 

Contacts

 

 Panthera Resources PLC                                                                                                                                                                                                  +61 411 220 942

 Mark Bolton (Managing Director)                                                                                                                                                                                         contact@pantheraresources.com

 Allenby Capital Limited (Nominated Adviser & Joint                                                                                                                                                                      +44 (0) 20 3328 5656
 Broker)

 John Depasquale / Vivek Bhardwaj (Corporate Finance)

 Guy McDougall / Kelly Gardiner (Sales & Corporate Broking

 Novum Securities Limited (Joint Broker)                                                                                                                                                                                 +44 (0) 20 7399 9400
 Colin Rowbury

Subscribe for Regular Updates

 

Follow the Company on Twitter at @PantheraPLC
(https://twitter.com/PantheraPlc)

 

For more information and to subscribe to updates visit: pantheraresources.com
(http://pantheraresources.com)

 

Qualified Person

The technical information contained in this disclosure has been read and
approved by Ian S Cooper (BSc, ARSM, FAusIMM, FGS), who is a qualified
geologist and acts as the Qualified Person under the AIM Rules - Note for
Mining and Oil & Gas Companies.  Mr Cooper is a geological consultant to
Panthera Resources PLC.

 

Forward-looking Statements

This news release contains forward-looking statements that are based on the
Company's current expectations and estimates. Forward-looking statements are
frequently characterised by words such as "plan", "expect", "project",
"intend", "believe", "anticipate", "estimate", "suggest", "indicate" and other
similar words or statements that certain events or conditions "may" or "will"
occur. Such forward-looking statements involve known and unknown risks,
uncertainties and other factors that could cause actual events or results to
differ materially from estimated or anticipated events or results implied or
expressed in such forward-looking statements. Such factors include, among
others: the actual results of current exploration activities; conclusions of
economic evaluations; changes in project parameters as plans continue to be
refined; possible variations in ore grade or recovery rates; accidents, labour
disputes and other risks of the mining industry; delays in obtaining
governmental approvals or financing; and fluctuations in metal prices. There
may be other factors that cause actions, events or results not to be as
anticipated, estimated or intended. Any forward-looking statement speaks only
as of the date on which it is made and, except as may be required by
applicable securities laws, the Company disclaims any intent or obligation to
update any forward-looking statement, whether as a result of new information,
future events or results or otherwise. Forward-looking statements are not
guarantees of future performance and accordingly, undue reliance should not be
put on such statements due to the inherent uncertainty therein.

 

**ENDS**

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