Manas Resources Ltd. is pulling out of a deal to acquire the Victoria gold project in Tanzania.
The company entered into a formal agreement in April 2017 to pay US$1.8 million in cash, including a US$800,000 prepayment, and issue US$2 million of performance rights as consideration, subject to license transfer milestones.
The group on May 25 said the main reasons for the termination were a lack of progress in the transfer of the licenses and the ongoing challenges facing miners in Tanzania.
Manas is entitled to be paid back the US$800,000 prepayment and further unspecified exploration and working capital contributions to the vendor group. The company made provisions in its 2017 reporting to impair these funds should it not be able to recover the funds.
The company said it will now fully focus on its activities in Cote d'Ivoire, where it recently agreed to acquire a 70% interest in the Mbengue gold property.
