Oriole Resources has signed a non-binding heads of terms for an earn-in agreement at its Bibemi gold project in Cameroon with BCM, an established Ghanaian mining and civil
contractor.
The agreement enables BCM to earn up to 50% of Oriole’s Bibemi project, in which Oriole holds a 92.2% interest.
Execution of the Earn-In Agreement will see BCM make a US$500k cash payment to Oriole by 31st December 2023. BCM will then commit to spend US$4m in exploration expenditure, primarily targeting resource-expansion drilling.
US$50,000 has been sent to Oriole as ‘Advanced Payment.’
Drilling is expected to begin in 1Q24, with Oriole managing the technical programme. Subsequent expenditure on the project will be on a ‘contribute or dilute’ basis.
However, if Oriole’s percentage falls below 5%, it’s stake will automatically convert into a 3% NSR royalty on Bibemi’s future production.
In addition to the US$4m exploration spend, BCM has also committed to the following success-based payments for the definition and expansion of the Bibemi Resource.
In addition to the US$4m exploration spend, BCM has also committed to the following success-based payments for the definition and expansion of the Bibemi Resource.
About Oriole Resources
Oriole Resources is an AIM-listed gold exploration company holding an expansive suite of prospective gold licences across West Africa, with a particular focus in Cameroon, a deeply under-explored and recently reformed mining jurisdiction.
About BCM
The BCM Group was founded in the early 1950’s beginning life as “Bayswater Contracting”, a family run company based in Perth, Western Australia, which concentrated on civil works and mining infrastructure and construction business.
Today, headquartered in Accra, Ghana and still owned by the same family, 100% of its annual revenues are derived from its international activities servicing customers from more than 15 countries, in the surface mining and civil earthworks contractor sectors.
Since 1990 the company has grown to become Africa’s largest private mining contractor, generating revenue of US$15M per month, having firmly established itself as a leader in reliable earthworks and surface mining contracting, now with offices in 8 countries.
The company employs nearly 5,000 people at its sites with its diversified business, ranging from mining contracting, earthworks, civil construction, exploration drilling, drill and blasting and in-mine technical and management support.
BCM were the only western-style mining contractor in the Central Asian region, based in Uzbekistan and Kazakhstan.
