West African Resources Limited has announced that it has acquired Burkina Faso’s gold explorer Channel Resource Limited
The West Africa-focussed company stated that it has issued 32,036,754 ordinary shares and 14,918,508 three-year share purchase warrants to buy the gold company. It had also issued 1,365,000 share purchase options in exchange for Channel Resource Limited’s options.
In 2013, the company acquired 19.9 per cent stake in Channel Resource Limited, the first process in acquiring the gold exploring company.
Richard Hyde, MD of West African Resources Limited, said, “The acquisition will see Channel Resource Limited’s Tanlouka project become a key part of its Burkina Faso portfolio. Tanlouka is adjacent to our existing Boulsa project and already has a known gold resource.”
The Boulsa project in Burkina Faso covers 6,370mn square metres and 200,000 metres of strike length of early Proterozoic Birimian greenstone belts, reportedly prospective for gold mineralisation.
Initial drilling programmes at Tanlouka will focus on improving the oxide and transitional components of the Mankarga-5 resource, the company said.
The company will also be targeting higher grade mineralisation at depth with diamond drilling, leading to a resource upgrade by the end of the Q1 2014.
“Scoping studies will be completed in the first half of 2014 focusing on creating a low-cost heap leach starter project, targeting near term cash-flow from the combination of West African Resources Limited’s and Channel Resource Limited’s near surface gold assets,” added Hyde.
