Castle strikes bold deal to expand West African | Australian Markets

ASX-listed Castle Minerals has gone all-in on West Africa, reducing a deal to purchase United Kingdom outfit Mineralis Limited and its seven gold exploration permits stretching 1842 sq. kilometres in a single of Africa’s hottest gold looking grounds.

The binding time period sheet provides Castle a 90 per cent stake in Mineralis, which holds the fitting to earn up to 90 per cent within the Côte d’Ivoire permits. One allow is already granted, whereas a additional six are within the utility pipeline.

The deal will see the seller obtain up to 10.5 million shares and 18 million three-year choices exercisable at 12 cents, offered a minimum of 4 permits are granted. Success-based rewards embrace 5.625 million efficiency shares plus $375,000 for a 500,000-ounce gold useful resource and a additional 9.375 million shares plus $625,000 if the tally tops a million ounces grading more than one gram per tonne.

The grounds all hug the southern Côte d’Ivoire–Ghana border and lie throughout the much-storied Birimian greenstone belt, which stretches by Ghana, Côte d’Ivoire and the broader West African area.

Six contiguous permits sit 25 kilometres north of Endeavour Mining’s monster 4.6-million-ounce Tanda-Iguela gold discovery. Despite quite a few mapped gold hits, the area has barely seen systematic drilling.

The remaining allow sits to the south, squarely on the extension of the Bibiani–Chirano belt, 50km from Toronto-based Kinross Mining’s 3.5-million-ounce Chirano gold mine in Ghana. It is in the identical geological neighbourhood as Turaco Gold’s 3.6-million-ounce Afema gold project.

To fund the Côte d’Ivoire foray, Castle is finishing $3.3 million placement for 55 million shares in two tranches at 6 cents every, barely a shade off its current trading ranges. The raise lifts its money to $4.7 million earlier than prices, with Mineralis shareholders additionally tipping in $270,000.

In line with Castle’s growth plans, the company is refreshing its board of administrators. Outgoing govt chairman Stephen Stone is sliding into a non-executive function, whereas former Gryphon Minerals and Teranga Gold govt Steve Zaninovich will step up as non-executive chairman.

Two additional director appointments embrace Malian project generator Mohammed Niare, who will head up in-country development, and seasoned operator Phillip Gallagher, who led the Didievi gold discovery in Côte d’Ivoire. Gallagher was beforehand CEO of Canyon Resources, which operates Cameroon’s Minim Martap bauxite project. He is a vendor of the new project by his possession of Mineral Holdings, which holds a 90 per cent stake in Mineralis.

The company says a new CEO shall be recruited sooner or later.

Castle says the transfer to decide up the new leases is a main complement to its Ghanaian portfolio, which incorporates the promising Kpali and Kandia gold prospects, each hosted in the identical Birimian rocks.

A current 2800m, 12-hole reverse circulation drilling marketing campaign at Kpali lit up the boards with a string of juicy hits, headlined by 1m at a cracking 20.66 grams per tonne (g/t) gold from simply 41m. Other highlights included 19m grading 2.93g/t gold, that includes a 4m part going 5.43g/t gold from 84m, and a 12m intercept operating at 3.52g/t from 138m, with a 4m slice grading 7.17g/t gold from 140m.

At Kandia, a 410-hole auger marketing campaign kicked off earlier within the month to probe new targets alongside massive regional buildings, which cut throughout its ground and host different multi-million-ounce gold systems. Castle has fast-tracked a reverse circulation drilling marketing campaign.

The timing of Castle’s determination to expand its West African pursuits seems spot on. Côte d’Ivoire is present process a gold exploration renaissance, with majors akin to Barrick Mining, Endeavour Mining and Perseus Mining already working multi-million-ounce mines together with Tongon, Ity and Sissingué. Meanwhile, juniors akin to Tietto, Montage and Turaco have racked up chunky sources of their own.

In easy phrases, Castle’s strategy is to trip the Birimian wave. These rocks have confirmed to be the engine room of West African gold exploration, and by locking in ground on either side of the Ghana–Côte d’Ivoire border, Castle is giving itself a number of pictures at repeating the area’s massive discovery tales.

With new ground, new management and recent capital, Castle is lining up a busy 2025. Early exploration throughout the Ivorian permits will embrace mapping, sampling and geophysics, with drilling to observe as targets firm up.

If only one of these West African targets delivers in step with its geological neighbours, Castle may discover itself holding the keys to a company-making discovery.

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