Option Agreement on 246Kms Exploration Permit
Vancouver, British Columbia (August 10, 2018) - Progress Minerals Inc. (“Progress” or the “Company”) is pleased to announce that it has entered into an option agreement (the “Option Agreement”), that if exercised, will result in Progress assuming a pre-existing earn-in agreement (the “Earn-in Agreement”) on a 246km2 exploration permit located on the Houndé Belt of Burkina Faso.
- * 246km2 exploration permit located in the Houndé greenstone belt
- * Located to the northeast of Roxgold’s Yaramoko mine and Semafo’s Mana mine
- * Entry into a highly prospective greenstone belt at minimal cost to Progress
The exploration permit, named Sao, is located along the northern extension of the Houndé greenstone belt in western Burkina Faso. The Sao permit has seen limited historic exploration making it an attractive greenfields property. It is in a highly prospective area along a structural corridor which hosts other major gold deposits. It is situated 50 to 60km to the northeast of Roxgold’s high grade Yaramoko mine and Semafo’s 4.9Moz Mana mine.
The Option Agreement has been entered with Aforo Resources Limited (“Aforo”), an unlisted public company based in Australia. Consideration of US$20,000 has been paid to Aforo on signing the Option Agreement and Progress is currently planning the first phase of exploration work to be conducted on the permit which is expected to commence in the coming weeks.
"We are very pleased to enter into this option agreement which provides Progress shareholders entry into one of the best-known greenstone belts in West Africa. The permit has seen limited prior exploration work and is situated along a major regional fault zone. It is an early-stage property with significant optionality given the low-cost nature of the option agreement and the underlying earn-in. Progress is well funded to explore this permit in parallel with our other planned programs in Burkina Faso and Côte d’Ivoire.”, commented Adam Spencer, President and CEO.
The terms of the Option Agreement provide that Progress can elect to exercise the option at any time prior to expiry, with consideration on exercise being the issue of 1,600,000 common shares of Progress, which represents an approximate 1.6% ownership interest in Progress. The initial term of the Option Agreement expires on December 31, 2018, however Progress can elect to extend that date to February 28, 2019.
If exercised, Progress will assume Aforo’s position in the Earn-in Agreement, which provides rights to earn up to a 90% interest in the Sao permit, subject to the current permit holder retaining a 10% interest and a 1.5% royalty. In order to complete the 90% earn-in, Progress will need to make small annual payments over a 4 year period that total US$140,000 in aggregate. Both the 10% retained interest and the 1.5% royalty are subject to a right-of-first-refusal that would allow Progress to consolidate a 100% interest in the exploration permit. All percentage stakes are prior to any government interest that would be issued at the time when a mining license is granted, should that happen.
K. Kirk Woodman, P. Geo, Vice President Exploration is a Qualified Person (as defined in NI 43-101 of the Canadian Securities Administrators) overseeing Progress’ exploration projects in Burkina Faso and Côte d’Ivoire and has reviewed and approved this press release.
About Progress Minerals Inc.
Progress is an exploration company, focused on the West African Birimian Greenstone Belts, targeting large, low-cost, high-quality, gold deposits. Progress is currently earning into a portfolio of permits in both Burkina Faso and Côte d’Ivoire, covering approximately 2,000km2 including anchor projects in each jurisdiction; the Bira Trend Project (Burkina Faso) and the Bobosso Project (Côte d’Ivoire).
On the Bira Trend Project, Progress has completed a district-wide power auger program targeting over 24km of a geochemical anomaly and recently completed a concurrent follow-on 5,129m (49 hole) reverse-circulation (“RC”) drill program to test priority targets within an area of known mineralization. Progress has identified seven drill-ready targets for follow-on RC drilling to commence in the fall of 2018. Progress is earning into a 70% interest in a large property package in Burkina Faso in partnership with Predictive Discovery Ltd. (ASX:PDI), whereby Progress is sole-funding US$5 million in expenditures by October 2021 to earn a 70% interest, after which time a joint-venture will be formed. Progress is finalizing its initial earn-in of 51% with Predictive after having spent the first US$1 million in eligible expenditures in Burkina Faso.
On the Bobosso Project, Progress has recently released final assays from its 2017 reverse-circulation drill program which have generated a number of targets for further follow-up within a large 7km2 gold-in-soil anomaly. Progress has signed a memorandum of understanding with its partners on the Bobosso Project (which includes Predictive Discovery Ltd.), pursuant to which Progress will consolidate a 100% interest in the property.
Adam Spencer, President & CEO
Tel: +1 416 804-9032