VANCOUVER, BC, April 12, 2021 /PRNewswire/ - Awalé Resources
Ltd. (TSXV: ARIC) (the "Company" or "Awalé") is pleased to announce
that it has entered into a binding Memorandum of Understanding
("MoU") with Geodrill Limited (TSX: GEO) ("Geodrill" ) for a
US$1 million drilling for equity
program on Awalé's Odienné and Bondoukou gold projects in Côte
d'Ivoire.
This MoU covers a minimum of 10,000 meters of drilling for value
US$1 million, commencing in April
over the Company's two focus areas.
- Odienné Project (North West Côte d'Ivoire)- Resource definition
and discovery drilling focussed on rapidly building near surface
gold ounces both in and around the existing Empire Main discovery
area. Extending mineralization over the 900m geochemical footprint at the Empire Main
high grade gold discovery is a priority and the Charger prospect
just to the north of Empire main will also be drill tested. Charger
is a compelling 700m long high order
geochemical anomaly that lies withing the Empire Corridor.
Refer recent announcements and
latest presentation:
https://www.awaleresources.com/_resources/presentations/corporate-presentation.pdf
- Bondoukou Project (North East Côte d'Ivoire)- Discovery
drilling over 5 to potentially 8 new drill ready targets hosted
along a 60 km near continuous gold anomalous structural setting.
These high order drill targets have been generated through the last
two years of systematic exploration. Each of the new targets have
different geological and structural settings and are situated over
all three granted tenements. The prospects include Samanda West, Awari Shear and the Kodio Gold
trend. Refer Latest presentation link above.
Geodrill, established in 1998, is a leading exploration drilling
Company with operations is Ghana,
Burkina Faso, Côte d'Ivoire,
Mali, and Zambia and will be mobilising in the coming
weeks.
CEO Glen Parsons commented
today:
"We are extremely pleased to announce this agreement with
Geodrill as this significant drill program secures Awalé's
potential to continue growing and discovering new, near surface
gold ounces at and around the Empire Main Zone.
Furthermore, we have the confidence that at Bondoukou we are
now poised for multiple gold discoveries. Bondoukou has the
potential to becoming a new gold camp in Côte d'Ivoire, evidenced
by the considerable systematic target generation work done by the
Awalé team over the last two and a half years. The significant
>60km mineralized trend continues to deliver multiple gold
anomalous targets, where we are ready to drill test the most
advanced targets.
Geodrill's drilling capabilities and availability in April
allows the Company to continue to advance its portfolio. We believe
Awalé is on the cusp of a momentum shift and we look forward to
working together with Geodrill in unlocking this potential.
The nature of this MoU reflects the confidence that Geodrill
has in the projects, Awalé's management and its strategy whilst
allowing the Company to preserve cash resources for further
exploration.
Dave Harper, Chief Executive
Officer commented:
"We previously performed the maiden drilling program for
Awalé and now we are extremely excited to be drilling these targets
at Odienné and Bondoukou. Having been on the ground we recognise
the potential scale of these projects and their extremely anomalous
long trends. It is always exciting in drilling new well-defined
targets that have been systematically explored to the point of firm
confidence to drill. Now we will see the results that unfold and
with this MoU we share in that exciting upside and look forward to
an aligned outcome with significant upside potential on Awalé's
gold assets in Côte d'Ivoire."
Details of the MoU:
Pursuant to the MoU, Awalé has the option to pay Geodrill for
its services in cash or a combination of cash and or the issuance
to Geodrill of common shares of Awalé (the "Payment Shares") based
on a deemed price for each Payment Share equal to the greater
of:
- the 15 day VWAP for the Payment Shares immediately prior to the
issuance of the Payment Shares less a 10% discount;
or
- the "Discounted Market Price" as defined in polices of the TSX
Venture Exchange (the "TSXV").
It is anticipated that the MoU will be replaced and superseded
by a standard drilling contract between Awalé and Geodrill setting
forth the drill programs for the Cote D'Ivoire Projects and
incorporating the terms set out in the MoU the "Drilling Contact").
The Drilling Contact will be for a term of six months.
The issuance of the Payment Shares to Geodrill is subject to
TSXV acceptance.
ON BEHALF OF THE BOARD OF
DIRECTORS
AWALÉ RESOURCES LTD.
"Glen Parsons"
Glen Parsons, Director
Neither the TSX Venture Exchange nor its Regulation Services
Provider (as that term is defined in the policies of the TSX
Venture Exchange) accepts responsibility for the adequacy or
accuracy of this release.
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content:http://www.prnewswire.com/news-releases/awale-resources-signs-drill-for-equity-memorandum-of-understanding-over-odienne-and-bondoukou-301266683.html
SOURCE Awale Resources