Vancouver, B.C., September 15, 2022. Sanu Gold Corporation (CSE: SANU) (“Sanu Gold” or the “Company”) is pleased to announce that the Company has earned into and acquired an initial 51% interest in each of the Daina, Diguifara and Bantabaye Gold Exploration Permits (the “Permits”) in Guinea, West Africa by acquiring a 51% interest in the Guinean partner companies¹ that hold the Permits, under the terms of the underlying agreements, as described in the Company’s final prospectus dated June 21, 2022.
Martin Pawlitschek, President & CEO of Sanu Gold commented,
“The Company has worked diligently to systematically explore our three highly-prospective gold exploration permits in Guinea, West Africa. In a short period of time we have defined multi-kilometre long gold anomalies, which we are now beginning to drill test. I am pleased to announce today we have reached our Stage 1 commitments to earn a 51% interest in each of the three permits and look forward to achieving our subsequent ownership milestones.”
On each of the Permits, upon completion of a definitive feasibility study (“DFS”), Sanu Gold, through its wholly-owned subsidiaries², has the right to acquire up to an 85% interest in the partner company, by funding a staged work program with key minimum milestones. On a decision to mine on any of the Permits, the partner company would be required to fund its pro-rata share of mine construction or elect to dilute to a 1.5% net smelter return (“NSR”) royalty.
The key terms of the Option Deeds with MS, NED and RM are as follows:
A 51% interest can be earned in each of MS, NED and RM by completing a minimum US$400,000 work program within 18 months of signing the TFPA. The minimum work commitment may include geochemical sampling, geological mapping, auger or rotary air blast drilling, reverse circulation drilling, and diamond drilling, sample analysis and geophysical surveys. Gainde has the right to direct the work program and its priorities, while the partner company personnel and its contractors will carry out the exploration and administrative management. The option will expire if Gainde fails to fulfill the minimum expenditure requirements and drilling commitments.
Sanu Gold has now met the minimum expenditure and work commitment milestones defined in the agreements with MS, NED and RM. Sanu has set up Zirasanu, a 100% owned Guinean corporation, to which it has assigned Gainde’s interests and, which holds a 51% ownership interest in each of MS, NED and RM. The completion of Stage 1 allows for Sanu Gold (through Zirasanu) to continue investing in the exploration permits and completing additional ownership milestones as outlined below:
A 75% interest can be earned in each of MS, NED and RM by investing a further US$600,000 into the exploration and development of each Daina, Diguifara and Bantabaye within 18 months of meeting the Stage 1 earn-in requirements.
An 80% interest can be earned in each MS, NED and RM by funding additional exploration and evaluation programs to the value of US$1,000,000 or by completing an initial resource estimate and a preliminary economic assessment (“PEA”) within 18 months of the completion of the Stage 2 earn-in.
Completion of a DFS
The Company has the right to earn an additional 5% stake in each of MS, NED and RM, for a total 85% interest, by completing a DFS.
Decision to Mine
On completion of a DFS, MS, NED or RM can apply for an exploitation permit. On granting of the exploitation permit the Government of Guinea will be entitled to a 15% interest in the joint venture company. The original shareholders of MS, NED or RM will be required to fund its share of the mine construction capital expenditure or alternatively can elect to dilute to a 1.5% NSR Royalty.
Sanu Gold will continue to advance the exploration programs on all the Permits and anticipates completing the next earn-in stages in due course.
The scientific and technical information contained in this press release has been reviewed and approved by Serigne Dieng, Ph.D., M.Sc., a Member (MAIG) of the Australian Institute of Geoscientists (AIG), Exploration Manager of the Company and a qualified person within the meaning of National Instrument 43-101 – Standards of Disclosure for Mineral Projects.
About Sanu Gold
Located within the world class Siguiri Basin, host to several operating mines, Sanu Gold is exploring three high quality gold exploration permits in Guinea, West Africa targeting multi-million ounce gold discoveries. The Company has defined multi-kilometer scale gold bearing structures on each of the gold exploration permits, with multiple high-value drill targets. Sanu is operated by a highly experienced team with successful records of discovery, resource development and mine permitting.
¹ Mansa Sanou Exploration SARL (“MS”) regarding the Daina Gold Exploration Permit (“Daina”), Nature Exploration and Discovery SARL (“NED”) regarding the Diguifara Gold Exploration Permit (“Diguifara”) and Ressources Mining SARL (“RM”) regarding the Bantabaye Gold Exploration Permit (“Bantabaye”).
² Gainde Gold SUARL (“Gainde”) and Zirasanu SARLU (“Zirasanu”).
President & CEO, Sanu Gold Corp.
For further information regarding Sanu Gold, please visit the Company’s website at www.sanugoldcorp.com or contact:
VP, Corporate Development & Communications
Sanu Gold Corp.
Renmark Financial Communications Inc.
+1 (514) 939-3989; +1 (212) 812-7680