Option agreement
14 December 2009 - 10:15PM
UK Regulatory
TIDMCLN
RNS Number : 0558E
Carlton Resources PLC
14 December 2009
Carlton Resources plc
("Carlton" or the "Company")
Option agreement to acquire highly prospective gold projects in Mali
The Directors of Carlton are pleased to announce that the Company has today
acquired an option (the "Option") to acquire all of the shares in Tobon Tondo
suarl ("Tobon"), a Malian incorporated company holding highly prospective gold
exploration interests known as the Karan exploration licence and the Diatissan
research permit (together, the "Licences") in Mali, Africa's third largest
producer of gold (the "Acquisition").
Acquisition highlights are set out below:
* the Licences are located in the vicinity of a number of producing gold mines in
Mali including, in relation to Karan, Syama (approx. 5.2m ounces), Siguiri
(approx. 5m ounces) and Morila (approx. 4m ounces) and, in relation to
Diatissan, Sadiola (approx. 12m ounces) and Loulo (approx. 4m ounces);
* consideration is payable only as a result of exercising the Option;
* if Carlton exercises the Option, an initial payment of GBP600,000 is payable, to
be satisfied by the issue of ordinary shares in the Company ("Ordinary Shares"),
with two further share-based payments of GBP600,000 each payable contingent on
the projects reaching specific pre-agreed development milestones; and
* Mali's economic systems actively encourage investment in, and development of,
its natural resources.
The Board is currently finalising detailed due diligence on Tobon and the
underlying assets, in the expectation that it will exercise the Option by not
later than 15 January 2010. The Option expires on 31 January 2010.
If the Option is exercised, the Acquisition will constitute a reverse takeover
of the Company under the AIM Rules for Companies. The AIM Rules for Companies
therefore would require that the Acquisition be approved by the Company's
shareholders at a general meeting. Accordingly, and in accordance with the AIM
Rules for Companies, trading in the Company's ordinary shares is now suspended
and will remain so until either (a) an admission document containing a circular
detailing the terms of the Acquisition and readmission to trading on AIM is
posted to the Company's shareholders; or (b) the Company confirms that it has
elected not to exercise the Option. The circular would also include the notice
of the general meeting to approve the proposed Acquisition.
Summary information on the Karan licence area
The Karan licence covers approximately 250km2, and is located approximately 90km
southwest from Bamako, the capital of Mali. Artisanal gold mining has taken
place in the region for centuries and sporadic gold exploration on a more
systematic level has occurred on the Karan permit area since the 1960s. The
Karan licence area contains multiple hard rock and eluvial targets, and
prospectivity is further enhanced by widespread artisanal mining activity that
follows the trend of mineralised structures which the Group will target
occurring at depth.
The prevalent rock types found within the licence and the apparent association
between this suite of rocks, fault and shear structures and mineralisation
currently being exploited by artisanal miners bears a strong correlation with
economic concentrations of gold found at some of the larger gold deposits in the
region, including Kalana, Kodieran, Morila and Banankoro mines, and bodes well
for future exploration. The primary objective of the initial exploration
programme proposed by Carlton will be to confirm and delineate the presence of
gold, suitable host rock types and structures typically associated with gold
mineralisation in Mali.
Subject to the exercise of the Option and completion of the Acquisition
("Completion"), four priority targets have been identified for further
investigation, with the initial focus being interpretation of exploration work
to date followed by geophysical surveys and drill testing of the highest
priority targets.
Summary information on the Diatissan permit area
The Diatissan permit area, approximately 16km2, is located close to the city of
Kayes in Western Mali and less than 20km from the Loulo and Tabakoto Gold Mines.
Extensive artisanal gold mining activity crosses the licence. Soil geochemistry
has identified a number of targets for follow-up exploration programmes, with
emphasis on excavation of trenches to expose saprolite and quartz veining.
The main gold deposits in Western Mali including Sadiola Hill, Yatela, Tabakoto
and Loulo are related to geological events which took place during the formation
of the Senegal-Malian fault and this major structure may influence gold
mineralisation in the Diatissan permit area.
The historical work completed on the licence, together with knowledge gained
from the location of artisanal mining activity would, subject to Completion,
provide the Company with ample scope to establish an exploration programme to
delineate mineralisation within the extensive anomalous zone already outlined.
The main gold anomaly on the Diatissan permit area extends over a strike length
of approximately 4.5km with a corresponding width ranging from 0.6km to over
1km. The anomaly was identified following geochemical soil sampling supported by
a trenching programme.
The Directors believe that the presence of artisanal mining may be a key
indicator of potential at Diatissan. The prolific production history of the
area dating back many centuries, the current high level of artisanal gold
production and the basic method of ore processing by the artisanal miners all
suggest that eluvial and bedrock deposits of gold mineralisation may remain at
depth yet to be located using modern exploration techniques.
Information on Mali and its mining industry
Mali is amongst Africa's largest gold producers, and gold is one of its key
exports. The country's economic system encourages investment in, and development
of, its mines, including unimpeded capital and dividend expatriation and
favourable tax and duty structures for mining ventures. A number of significant
gold mining companies such as Anglo Gold Ashanti, IAMGOLD, Randgold Resources
and Resolute Mining have operations in Mali.
Under Mali law an "exploration licence", is granted for a period of 3 months and
is renewable for a further period of 3 months without amendment to the area
covered, and a "research permit", which has a duration of 3 years and is
renewable twice for a further 3 years with a 50 per cent relinquishment
requirement on each renewal.
At present, there is an exploration licence in place for Karan held by Tobon;
however it is expected that a research permit will be granted to Tobon
imminently (and prior to exercise of the Option). The Diatissan permit area is
covered by a research permit which the directors of Carlton understand has
approximately 18 months remaining and Carlton understands that such permit is in
the process of renewal.
Shareholders will be updated regarding the Option and the proposed Acquisition
as appropriate.
For further information, please contact:
+--------------------------------------------------+---------------------+
| Carlton Resources Plc | Tel: +44 75 4989 |
| Mark Burchnall (Chief Executive) | 2425 |
| | |
+--------------------------------------------------+---------------------+
| Strand Hanson Limited (Nominated Adviser) | Tel: +44 20 7409 |
| Warren Pearce/Paul Cocker | 3494 |
+--------------------------------------------------+---------------------+
| Ambrian Partners Limited (Broker) | Tel: +44 20 7634 |
| Shaun Whyte | 4722 |
+--------------------------------------------------+---------------------+
| Conduit PR (Press Enquiries) | Tel: +44 20 7429 |
| Charlie Geller/Leesa Peters | 6604 |
+--------------------------------------------------+---------------------+
This information is provided by RNS
The company news service from the London Stock Exchange
END
AGRFFEFSLSUSEIE
Carlton Res. (LSE:CLN)
Historical Stock Chart
From May 2024 to Jun 2024
Carlton Res. (LSE:CLN)
Historical Stock Chart
From Jun 2023 to Jun 2024
