ASX-listed Middle Island Resources is selling its Reo gold project in Burkina Faso, West Africa, to Tajiri Resources Corporation after the Vancouver-based company exercised its option to acquire the project.
Tajiri has paid the company a final USD$150,000 option extension and exercise fee and will pay Middle Island USD$335,000 in cash and 5 million Tajiri shares, representing an 8% stake in Tajiri, for the Reo project.
Management said the company would retain exposure to the Reo gold project via Tajiri shares and a residual 2% net smelter royalty, which Tajiri may acquire at any time for USD$5 million.
Middle Island will also gain exposure to Tajiri’s portfolio of gold exploration projects in Guyana, South America.
The Reo project comprises six exploration permits covering an area of about 1,000 square kilometres about 150km west of Burkina Faso’s capital, Ouagadougou.
It is also located 90km north of the historical Poura gold mine, 70km northeast of the Mana gold operation, 80km southwest of the Bissa gold mine developed by Nord Resources and adjacent to Glencore’s Perkoa volcanogenic massive sulphide zinc deposit.
The project area straddles the structurally complex junction of the well-endowed Boromo and Houndé greenstone belts.
Gold mineralisation at Reo was identified at six main prospects by Newmont between 2007 and 2010, with Middle Island’s more recent exploration defining a seventh prospect.
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