Golden Rim Resources Ltd. said Dec. 11 that it signed a binding heads of agreement to acquire Pella Group unit Lafi Gold Ltd., which indirectly owns exploration permits Goueli and Margou adjoining Golden Rim's Kouri gold project in Burkina Faso.
The 188-square-kilometer permits are adjacent to the eastern boundary of the Kouri permit, where the company delineated a 1.4 million-ounce gold resource. The acquisition provides potential to increase mineral resources in the area.
The permits increase the company's landholding in Kouri to 245 square kilometers and increase its control over the Samira Hill shear zone to 40 kilometers from 16 kilometers.
As part of the acquisition, the company will have to pay 79,034,375 shares worth about A$1.3 million, after which Lafi Gold shareholders are expected to own 14.9% of Golden Rim.
The company said it identified two priority areas for its initial exploration activity within the newly acquired permits.
The parties must sign a definitive deal by the end of January 2019, otherwise, the agreement will terminate.