Perth-based gold miner West African Resources has gained approval from shareholders of Canadian-based Channel Resources to combine the two companies for further expansion of gold projects in Burkina Faso.
Perth-based gold miner West African Resources has gained approval from shareholders of Canadian-based Channel Resources to combine the two companies for further expansion of gold projects in Burkina Faso.
West African is to acquire all of Channel’s issued and outstanding common shares in the arrangement after approval by Canada's TSX Venture Exchange.
At Channel's special shareholder meeting held on December 6, 99.7 per cent of votes representing half of the outstanding shares of Channel were cast in favour of the resolution to approve the acquisition.
“The overwhelming vote of approval for the arrangement confirms our belief that the combination of the two companies is in the best interests of shareholders,” Channel’s chief executive Colin McAleenan said.
“For our shareholders, the combination with West African presents an opportunity to participate in fast-tracking exploration and potential development of our joint properties located in some of the most prolific gold belts in the world in mining-friendly Burkina Faso.”
Under the agreement West African will gain access to Channel’s Tanlouka gold project in Burkina Faso and plans to commence drilling at the project as soon as the agreement is finalised.
“We are delighted with the high level of support from Channel shareholders for the Plan of Arrangement,” West African’s chief executive Richard Hyde said.
“We plan to commence reverse circulation and diamond drilling on the Tanlouka gold project as soon as the transaction closes.
“Initial RC drilling will target near surface oxide potential of the Mankarga 5 deposit, while diamond drilling will test for high-grade targets at depth.
“We expect to complete a resource upgrade and scoping study on a low capex heap leach gold project within the March 2014 quarter, and I look forward to progressing our projects on all fronts.”
Tanlouka is adjacent to West African's Boulsa project for which West African raised $3 million for drilling at its Moktedu trend.
Shares in West African are down 1 cent to 14 cents per share, as of 11.45am, WST.
