TIDMASO
RNS Number : 8459G
Avesoro Resources Inc.
09 November 2018
9 November 2018
Avesoro Resources Inc.
TSX: ASO
AIM: ASO
DISCLOSURE OF RELATED PARTY TRANSACTIONS
Avesoro Resources Inc. ("Avesoro" or the "Company"), the TSX and
AIM listed West African gold producer, is pleased to provide an
update on related party transactions in accordance with rules 13
and 16 of the AIM Rules for Companies (the "AIM Rules").
Since the Company's announcement on 21 February 2018, Faso
Drilling Company SARL ("Faso"), a related party of the Company, has
provided drilling services to Burkina Mining Company SA ("BMC"),
Netiana Mining Company SA ("NMC"), Eutruscan Resources Burkina Faso
SA ("ERBF") and MNG Gold Burkina SARL ("MNGGB") pursuant to
agreements entered into during the course of 2018 (the
"Agreements").
Drilling Services Agreement Terms
The Agreements were entered into as part of the previously
announced drilling programme in Burkina Faso. The services are
provided on an arms-length basis and Faso's drilling rates of
US$41-69 per metre are, in the Company's belief, significantly more
favourable than BMC, NMC, ERBF or MNGGB could have obtained from
other third-party providers.
The total value of services provided under the Agreements in the
nine months to 30 September 2018 is approximately US$5.6 million in
aggregate, payable in cash.
Faso is a subsidiary of Avesoro Jersey Limited, the Company's
parent company, and therefore, entering into the Agreements
constitutes a related party transaction for the Company under the
AIM Rules.
Opinion of the Independent Directors
The independent directors of the Company, consisting of Mr.
David Netherway, Mr. Jean-Guy Martin and Mr. Loudon Owen consider,
having consulted with the Company's Nominated Adviser, that the
terms of these transactions are fair and reasonable insofar as its
shareholders are concerned.
Disclosure of other related party transactions
Further to the Company's announcement dated 21 February 2018,
the Company discloses at this time the following other related
party transactions that it has entered into during the nine months
ended 30 September 2018. These transactions do not constitute
related party transactions under rule 13 of the AIM Rules for
Companies.
Drilling services provided to Bea Mountain Mining Corporation
("BMMC", a subsidiary of the Company) by Zwedru Mining Inc.
("Zwedru")
Over the last nine months, Zwedru, a wholly owned subsidiary of
Avesoro Jersey Limited, has provided diamond and reverse
circulation drilling services to BMMC. These services are provided
on an arms-length basis at a rate of US$40-85 per metre, a rate
significantly more favourable than BMMC has previously been able to
obtain from other third-party providers. The total value of these
services provided over the last nine months is approximately US$2.2
million, payable in cash.
Equipment purchased by BMC from Mapa İn aatve Ticaret A. .
("Mapa")
Over the last nine months, BMC purchased five haul trucks
totaling approximately US$382,000 from Mapa, a member of the MNG
Group of companies, payable in cash.
Charter plane services provided to BMMC by MNG Gold Liberia Inc.
("MNGGL")
Over the last nine months, BMMC has chartered flights from
MNGGL, a subsidiary of Avesoro Jersey Limited. BMMC undertook a
benchmarking exercise and agreed an hourly rate to be paid to MNGGL
in respect of these services and is charged US$3,000 per flying
hour. The total value of these services provided over the last nine
months is approximately US$270,000, payable in cash.
Travel services provided to BMMC and BMC by MNG Turizm ve
Ticaret A. . ("MNG Turizm")
Over the last nine months, MNG Turizm, a member of the MNG Group
of companies, has provided travel agency services to BMMC and BMC.
MNG Turizm is a commercial travel agency and the prices paid by
BMMC and BMC are the same as those paid by their arms-length
customers. The total value of these services provided over the last
nine months is approximately US$20,000, payable in cash.
Technical and support services provided to MNGGL by Avesoro
Madencilik Hizmetleri A. . ("AMH", a subsidiary of the Company)
Over the last nine months, AMH has provided technical and
support services to MNGGL to support the Kokoya Gold Mine. These
services are recharged to MNGGL at a mark-up of 5.5-13.5% over the
cost incurred by AMH in providing these services. The total value
of these services provided over the last nine months is
approximately US$316,000, payable in cash.
Sale of consumables by AMH to MNGGL and Faso and provision of
catering services by BMC to Faso
Over the last nine months AMH has procured on behalf of and sold
to MNGGL and Faso consumables totaling $1.7 million, payable in
cash. The consumables are charged at a rate of cost plus 4.5%. Over
the last nine months BMC has provided catering services to Faso
totaling $286,000, payable in cash.
Contact Information
Avesoro Resources Inc.
Geoff Eyre / Nick Smith
Tel: +44(0) 20 3405 9160
Camarco finnCap
(IR / Financial PR) (Nominated Adviser and Joint Broker)
Gordon Poole / Nick Hennis/ Monique Perks Christopher Raggett / Scott Mathieson /
Tel: +44(0) 20 3757 4980 Camille Gochez
Tel: +44(0) 20 7220 0500
------------------------------------------
Berenberg Hannam & Partners (Advisory) LLP
(Joint Broker) (Joint Broker)
Matthew Armitt / Sara MacGrath Rupert Fane / Ingo Hofmaier / Ernest Bell
Tel: +44(0) 20 3207 7800 Tel: +44(0) 20 7907 8500
------------------------------------------
About Avesoro Resources Inc.
Avesoro Resources is a West Africa focused gold producer and
development company that operates two gold mines across West Africa
and is listed on the Toronto Stock Exchange ("TSX") and the AIM
market operated by the London Stock Exchange ("AIM"). The Company's
assets include the New Liberty Gold Mine in Liberia ("New Liberty")
and the Youga Gold Mine in Burkina Faso ("Youga").
New Liberty has an estimated Proven and Probable Mineral Reserve
of 7.4Mt with 717,000 ounces of gold grading 3.03g/t and an
estimated Measured and Indicated Mineral Resource of 9.6Mt with
985,000 ounces of gold grading 3.2g/t and an estimated Inferred
Mineral Resource of 6.4Mt with 620,000 ounces of gold grading
3.0g/t. The foregoing Mineral Reserve and Mineral Resource
estimates and additional information in connection therewith,
prepared in accordance with CIM guidelines, is set out in an NI
43-101 compliant Technical Report dated November 1, 2017 and
entitled "New Liberty Gold Mine, Bea Mountain Mining Licence
Southern Block, Liberia, West Africa" and is available on SEDAR at
www.sedar.com.
Youga has an estimated Proven and Probable Mineral Reserve of
11.2Mt with 660,100 ounces of gold grading 1.84g/t and a combined
estimated Measured and Indicated Mineral Resource of 16.64Mt with
924,200 ounces of gold grading 1.73g/t and an Inferred Mineral
Resource of 13Mt with 685,000 ounces of gold grading 1.70g/t. The
foregoing Mineral Reserve and Mineral Resource estimates and
additional information in connection therewith, prepared in
accordance with CIM guidelines, is set out in an NI 43-101
compliant Technical Report dated July 31, 2018 and entitled
"Mineral Resource and Mineral Reserve Update for the Youga Gold
Mine, Burkina Faso" and is available on SEDAR at www.sedar.com.
For more information, please visit www.avesoro.com
This information is provided by RNS, the news service of the
London Stock Exchange. RNS is approved by the Financial Conduct
Authority to act as a Primary Information Provider in the United
Kingdom. Terms and conditions relating to the use and distribution
of this information may apply. For further information, please
contact rns@lseg.com or visit www.rns.com.
END
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