Execution of Mbe Conditional Earn-In Agreement

Oriole Resources PLC

19 January 2024

 

Oriole Resources PLC 

('Oriole Resources' or 'Oriole' or 'the Company')

Execution of Mbe Conditional Earn-In Agreement

Oriole Resources (AIM: ORR), the AIM-quoted gold exploration company focussed on West Africa, is delighted to report that, further to its announcements on 20 November 2023, it has signed a definitive earn-in agreement ('Earn-In Agreement') with BCM International Limited ('BCM') in relation to the Company's Mbe gold project ('Mbe') in Cameroon.

This is Oriole's second earn-in agreement with BCM, having signed a similar deal earlier this month in relation to the Company's Bibemi gold licence in Cameroon (announcement dated 5 January 2024).

Highlights

·    Execution of the Mbe Earn-In Agreement whereby BCM will earn up to a 50% interest in Mbe in return for meeting certain commitments which, in addition to a US$1 million Signature Payment (against which the Company has already received a US$50k advanced payment), include U$4 million in exploration expenditure and future resource-linked success-based payments;

·    The Mbe Earn-In agreement, and payment of the Signature Payment, is conditional on the successful conclusion of BCM's due-diligence review on or before 31 January 2024;

·    Sampling results from that due-diligence review are anticipated later this month.

Oriole Resources CEO, Tim Livesey, said: "With the signing of this second earn in agreement with BCM, we look forward to advancing the exploration at the Mbe licence in parallel with our resource expansion work at Bibemi.

"Since Oriole was granted its package of eight contiguous licences in central Cameroon back in February 2021, we have advanced with great success, identifying a large number of significant gold anomalies in what we suggest could be a corridor of mineralisation some 75 km-long. Prior to our licence application, this area was open ground and indicates the huge opportunity Cameroon has for new discoveries.

"At Mbe, the originally identified 12 km-long gold-in-soils anomaly has delivered several zones of significant surface gold mineralisation in vein sets grading up to 134 g/t Au. We expect the current period of due diligence by BCM will show further support for this area when results are received from their sampling programme later this month.

"With two of our 11 licences in Cameroon now under earn-in agreements, we still retain a significant position in this emerging jurisdiction for gold exploration, and look forward to sharing news of our progress throughout 2024 as we continue to explore in this new gold district."

Further Details

On 20 November 2023, the Company signed a Heads of Terms with BCM International Limited, a well-respected mining and civil contractor, related to an earn-in by BCM on the Company's Mbe (90%-owned) gold project.

Mbe (312km²) is an early-stage project located within the broader 2,266km² Eastern CLP package of contiguous gold-focussed licences in central Cameroon ('Eastern CLP' or the 'Licence Package'). During 2023, the Company identified a 3km-long geological zone containing areas of high-grade gold mineralisation with results of up to 134.10 grammes per tonne ("g/t") gold ("Au") from surface samples and artisanal workings (announcements dated 30 January 2023, 27 February 2023 and 21 June 2023).

The Company today reports that a definitive Earn-In Agreement has been executed for Mbe, securing up to US$4 million in exploration expenditure, in addition to a US$1 million Signature Payment and JORC resource linked success-based payments (announcement 20 November 2023). This is Oriole's second earn-in agreement with BCM, having signed a similar deal earlier this month in relation to the Company's Bibemi gold licence in Cameroon (announcement dated January 2024).

Completion of the Mbe Earn-In Agreement, and receipt of the Signature Payment, is conditional on the successful outcome of a due diligence review by BCM, ending no later than 31 January 2024. To date, BCM has completed (at its own cost) a three-week long site visit at Mbe and has collected 639 rock samples, each weighing 2-5 kilograms, over the main 3km-long zone (announcement dated 2 January 2024). Analysis of the samples (together with 68 QAQC samples, for a total 707 samples) is being undertaken by Intertek Ghana, predominantly for Fire Assay analysis but also for some preliminary metallurgical testwork (bottle-roll leach test) to ascertain the recoverability of the gold. Results are expected later this month.

Following a successful completion of the due-diligence review, the balance of the Signature Payment will be made in two tranches, with the first tranche of US$500,000 to be made on or before 31 January 2024 and the balance of US$450,000 to be paid on or before 29 February 2024.

Competent Persons Statement 

The information in this release that relates to Exploration Results has been compiled by Claire Bay (Executive Director, Exploration and Business Development). Claire Bay (MGeol, CGeol) is a Competent Person as defined in the JORC code and takes responsibility for the release of this information. Claire has reviewed the information in this announcement and confirms that she is not aware of any new information or data that materially affects the information reproduced here, and that the material assumptions and technical parameters that underpin the Bibemi Mineral Resource Estimate continue to apply.

** ENDS **

The information contained within this announcement is deemed to constitute inside information as stipulated under the retained EU law version of the Market Abuse Regulation (EU) No. 596/2014 (the "UK MAR") which is part of UK law by virtue of the European Union (Withdrawal) Act 2018. The information is disclosed in accordance with the Company's obligations under Article 17 of the UK MAR. Upon the publication of this announcement, this inside information is now considered to be in the public domain.

For further information please visit www.orioleresources.com, @OrioleResources on Twitter, or contact:

Oriole Resources Plc	Tel: [phone]
Tim Livesey / Bob Smeeton / Claire Bay
BlytheRay (IR/PR Contact)	Tel: [phone]
Tim Blythe / Megan Ray
Grant Thornton UK LLP	Tel: [phone]
Samantha Harrison / Ciara Donnelly
SP Angel Corporate Finance LLP Ewan Leggat / Harry Davies-Ball	Tel: [phone]

Notes to Editors:

Oriole Resources PLC is an AIM-listed gold exploration company, operating in West Africa. It is focussed on early-stage exploration in Cameroon, where the Company has reported a Resource of 375,000 oz Au at 2.30g/t in the JORC Inferred category at its 82.2%-owned Bibemi project and has identified multi-kilometre gold and lithium anomalism within the district-scale Central Licence Package project. BCM International is currently earning up to a 50% interest in the Bibemi and Mbe projects in return for a combined investment of up to US$8m in exploration expenditure, as well as JORC resource-based success payments.

At the more advanced Senala gold project in Senegal, AGEM Senegal Exploration Suarl ('AGEM'), a wholly-owned subsidiary of Managem Group, has earned an initial 51% beneficial interest in the Senala Exploration Licence by spending US$4 million and has the option to spend up to a further US$4 million by 17 February 2024 to earn an additional 19% interest in the licence. The Company also has several interests and royalties in companies operating in East Africa and Turkey that could deliver future cash flow.

 

END