Tulu Kapi hosts 1.8mln ounces of gold resources and a definitive feasibility study confirmed the project’s technical and economic viability last December.Nyota Minerals (LON:NYO) has confirmed a plan to sell 75% of the flagship Tulu Kapi gold mine project in Ethiopia.
In return the AIM quoted gold firm will receive £1mln of cash and £3.5mln in shares, and it will retain a paying 25% interest in the project.
The identity of the buyer, described by Nyota as a “junior exploration and development company listed on a regulated stock market”, still remains a closely guarded secret. Nyota says this is for commercial confidence and to mitigate the risk of the sale not proceeding.
It is envisaged that the new partner will manage the work programmes at Tulu Kapi.
A new update to the project’s resource estimate is planned for the first six months following the deal’s completion - and Nyota’s obligation to continue funding the project doesn’t kick in until this milestone is achieved.
The proposed work programme was submitted to the Ethiopian authorities last week, and the government’s approval is one of the conditions of the deal being completed.
A completion of a fundraising by the buyer is also a requirement.
Tulu Kapi hosts 1.8mln ounces of gold resources and a definitive feasibility study confirmed the project’s technical and economic viability last December. For a mine development to get underway the project has to be approved by the Ethiopian government.
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