West African to acquire 100% of Tanlouka Permitadmin
West African to acquire 100% of Tanlouka Permit
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West Australia, March 06, 2014 /FSC/ – West African Resources Ltd (WAF – TSX Venture, WAF – ASX), (“West African” or the “Company”) is pleased to announce it has entered into an agreement to acquire the remaining 10% of the Tanlouka Permit, part of the Boulsa Project, Burkina Faso. The acquisition will take West African to 100% ownership of the permit.
The acquisition, which is conditional on completion of a positive feasibility within 18 months, comprises the following consideration:
* US$50,000 on execution of the agreement
* Issue of 2,500,000 ordinary shares in West African Resources Ltd and payment of US$250,000 following completion of a positive feasibility study on the Tanlouka permit
West African expects to develop significant corporate and scheduling benefits from having 100% control of the project. The agreement adds certainty to potential project financiers for the future development of the Mankarga 5 deposit, part of the Tanlouka Permit.
The Company has set a goal of being a +50,000oz per annum gold producer within two years, subject to study outcomes, via a low-cost heap leach starter project.
West African announced last week it had secured a second-hand 1.6Mtpa heap leach plant as part of its plan to fast-track development of Mankarga 5.
Significant exploration potential remains throughout the Tanlouka permit, including existing targets at Mankarga 1 and the untested Manesse and Tanwaka soil anomalies.
Commenting on the acquisition, West African’s Managing Director Richard Hyde said: “Reaching agreement to take our ownership of the Tanlouka permit to 100% is an important milestone for us.
“We are moving on quickly following the acquisition of Channel Resources in January. We will deliver a resource upgrade for Mankarga 5 by the end of this quarter, and complete a Preliminary Economic Assessment and Scoping Study in the first half of calendar 2014.”
Competent Person’s Statement
Information in this announcement that relates to exploration results, exploration targets or mineral resources is based on information compiled by Mr Richard Hyde, a Director, who is a Member of The Australian Institute of Mining and Metallurgy and Australian Institute of Geoscientists. Mr Hyde has sufficient experience which is relevant to the style of mineralisation and type of deposit under consideration and to the activity which he is undertaking to qualify as a Competent Person as defined in the 2012 Edition of the Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves (the JORC Code) and a Qualified Person under National Instrument 43-101. Mr Hyde consents to the inclusion in this announcement of the statements based on his information in the form and context in which they appear.
Forward Looking Information and Cautionary Statements
This announcement has been prepared in compliance with the JORC Code 2012 Edition, the ASX Listing Rules and NI43-101.
The information relating to the Mankarga 5 Mineral Resource Estimate is extracted from Channel’s NI43-101 report dated August 17, 2012 and is available to view on www.westafricanresources.com and on Channel Resources Ltd’s profile on www.sedar.com . Supplementary information about the Mangarga 5 Mineral Resource is also included in the Company’s December 2013 Quarterly Report.
This news release contains “forward-looking information” within the meaning of applicable Canadian and Australian securities legislation, including information relating to West African’s future financial or operating performance may be deemed “forward looking”. All statements in this news release, other than statements of historical fact, that address events or developments that West African expects to occur, are “forward-looking statements”. Forward-looking statements are statements that are not historical facts and are generally, but not always, identified by the words “expects”, “does not expect”, “plans”, “anticipates”, “does not anticipate”, “believes”, “intends”, “estimates”, “projects”, “potential”, “scheduled”, “forecast”, “budget” and similar expressions, or that events or conditions “will”, “would”, “may”, “could”, “should” or “might” occur. All such forward-looking statements are based on the opinions and estimates of the relevant management as of the date such statements are made and are subject to important risk factors and uncertainties, many of which are beyond West African’s ability to control or predict. Forward-looking statements are necessarily based on estimates and assumptions that are inherently subject to known and unknown risks, uncertainties and other factors that may cause actual results, level of activity, performance or achievements to be materially different from those expressed or implied by such forward-looking statements. In the case of West African, these facts include their anticipated operations in future periods, planned exploration and development of its properties, and plans related to its business and other matters that may occur in the future. This information relates to analyses and other information that is based on expectations of future performance and planned work programs. Statements concerning mineral resource estimates may also be deemed to constitute forward-looking information to the extent that they involve estimates of the mineralization that will be encountered if a mineral property is developed.
Forward-looking information is subject to a variety of known and unknown risks, uncertainties and other factors which could cause actual events or results to differ from those expressed or implied by the forward-looking information, including, without limitation: exploration hazards and risks; risks related to exploration and development of natural resource properties; uncertainty in West African’s ability to obtain funding; gold price fluctuations; recent market events and conditions; risks related to the uncertainty of mineral resource calculations and the inclusion of inferred mineral resources in economic estimation; risks related to governmental regulations; risks related to obtaining necessary licenses and permits; risks related to their business being subject to environmental laws and regulations; risks related to their mineral properties being subject to prior unregistered agreements, transfers, or claims and other defects in title; risks relating to competition from larger companies with greater financial and technical resources; risks relating to the inability to meet financial obligations under agreements to which they are a party; ability to recruit and retain qualified personnel; and risks related to their directors and officers becoming associated with other natural resource companies which may give rise to conflicts of interests. This list is not exhaustive of the factors that may affect West African’s forward-looking information. Should one or more of these risks and uncertainties materialize, or should underlying assumptions prove incorrect, actual results may vary materially from those described in the forward-looking information.
West African’s forward-looking information is based on the reasonable beliefs, expectations and opinions of their respective management on the date the statements are made and West African does not assume any obligation to update forward looking information if circumstances or management’s beliefs, expectations or opinions change, except as required by law. For the reasons set forth above, investors should not place undue reliance on forward-looking information. For a complete discussion with respect to West African, please refer to West African’s financial statements and related MD&A, all of which are filed on SEDAR at www.sedar.com.
Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.
To view the press release as a PDF, please click on the following link:
Source: West African Resources Ltd (TSX-V: WAF) http://www.westafricanresources.com
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Posted: March 6th, 2014 under FSCWIRE.