In summary, the company have mineral exploration projects in Tanzania and Mauritania and as at 31 March 2018 had a strong cash position of $16.2 million. The Nyanzaga Gold Project in Tanzania is more advanced and has a Mineral Resource Estimate of 3.07Moz @ 4.03g/t gold. Average production is expected to be 213koz gold per annum over the initial 12 year mine life.
This morning the company announced that its Tanzanian subsidiary, OreCorp Tanzania Limited, has now completed its earn-in obligations in respect of the Nyanzaga Gold Project in Tanzania, in accordance with the Earn-in Agreement entered into by the company and Acacia Mining plc on 22 September 2015. OreCorp has exercised its option to acquire an additional 26% interest in the project in consideration for the payment of US$3 million to Acacia. This will increase OreCorp’s interest in the project from 25% to 51%.
OreCorp has also signed a binding conditional heads of agreement with Acacia to allow OreCorp to move to 100% ownership of Nyanzaga by making a further payment of US$7 million. Acacia will retain a net smelter return royalty capped at US$15 million.
Today’s news has pushed up the ORR share price 52.94% to 26c. One to watch perhaps for those interested in African gold explorers/miners. The major worry with Africa generally is political instability and sovereign risk. I’m not sure if this is currently an issue in Tanzania.