Boss Resources has signed an agreement to sell its interest in the Golden Hill and Gourma Projects in Burkina Faso, West Africa, to its joint venture partner Teranga Gold (Australia).
The consideration for the transaction is A$10m ($7.5m) in cash.
Under the terms of the agreement, Boss will sell all of its shares held in Boss Minerals Pty Ltd and Askia Gold Pty Ltd, being the entities that presently hold Boss’ 49% interest in the Golden Hill and Gourma Projects, respectively, to Teranga.
As announced on 5 February 2018, following approaches and renewed interest in the West African gold sector, Boss commenced assessing options to maximise value of its joint venture interest in Golden Hill and Gourma to realise value for shareholders and allow it to maintain focus on the Honeymoon Uranium Project, South Australia.
Boss Resources Managing Director, Duncan Craib, said: “We are really pleased to have executed this deal with Teranga, a company with which we partnered with to advance Golden Hill.
“We see this sale as a win-win for both companies as it will allow us to focus on our Honeymoon Uranium Project, while Teranga is much better placed to follow the gold assets through to production.
“Proceeds from the sale will be important in helping us ensure Honeymoon is production-ready once the uranium price hits our target, strengthening Boss’s balance sheet and taking us closer to becoming Australia’s next uranium producer.”
Completion under the Sale Agreement will occur within 3 business days.
Source: Company Press Release