Many Peaks Secures 24-Month Option on Côte d’Ivoire’s Baga Gold Project
Many Peaks Minerals Limited has retained its option to acquire 100% of the Baga Gold Project in Côte d’Ivoire, advancing exploration with amended payment terms that blend cash and shares.
- Retention of 24-month option on Baga Gold Project
- Amended option agreement with mixed cash and share payments
- Exploration underway in Birimian greenstone belt, West Africa
- Deferred payments linked to JORC-compliant resource milestones
- Commercial production triggers final consideration payments
Strategic Retention of Baga Gold Project Option
Many Peaks Minerals Limited (ASX – MPK) has confirmed it will maintain its exclusive 24-month option to acquire 100% ownership of the Baga Gold Project, located in the highly prospective Birimian greenstone belts of Côte d’Ivoire. This decision follows the payment of a 12-month option fee and signals the company’s commitment to advancing exploration activities in a region renowned for world-class gold deposits.
Amended Terms Reflect Balanced Consideration Structure
The company has renegotiated its option agreement with Atlantic Resources CI SARL, the project’s vendors, introducing a revised payment framework that combines cash and equity components. Instead of solely issuing shares, Many Peaks will now pay a fixed cash amount alongside a reduced share issuance, with the flexibility to settle the cash portion in either cash or shares at its discretion. This adjustment aims to balance shareholder dilution with financial prudence.
Exploration Progress and Geological Insights
Initial fieldwork at Baga has identified promising soil geochemistry anomalies and structural features that warrant further investigation. The company plans systematic follow-up exploration to build its geological understanding ahead of more advanced drilling campaigns. Managing Director Travis Schwertfeger highlighted that maintaining the option allows Many Peaks to deepen its knowledge of the project’s potential before committing to full acquisition.
Milestone-Linked Deferred Consideration
The amended agreement includes deferred consideration payments contingent on the declaration of a JORC-compliant mineral resource and the commencement of commercial production. Specifically, Many Peaks will pay the vendors US$1.25 per ounce for gold classified in the Measured or Indicated categories, with additional payments if resource estimates increase. This structure aligns vendor remuneration with project success and de-risks upfront capital outlay.
Looking Ahead
As Many Peaks advances exploration and due diligence, the market will be watching closely for updates on resource estimates and regulatory approvals. The company’s strategic approach to securing the Baga Gold Project option while managing financial exposure positions it well to capitalize on West Africa’s rich gold endowment.
Bottom Line?
Many Peaks’ measured approach to securing Baga underscores the high stakes and potential rewards of West African gold exploration.
Questions in the middle?
- When will Many Peaks announce its first JORC-compliant mineral resource estimate for Baga?
- How will the company balance cash and share payments if the option is exercised?
- What are the timelines and challenges for obtaining regulatory approvals in Côte d’Ivoire?
