Santa Fe’s Eburnea Acquisition Hinges on Approvals Amid Complex Royalty Terms
Santa Fe Minerals has entered binding agreements to acquire the Eburnea Gold Project in Côte d’Ivoire, backed by a $1.2 million capital raise at a 61% premium. The acquisition includes promising permits with historic high-grade gold intercepts, setting the stage for an aggressive exploration campaign.
- Acquisition of Eburnea Gold Project from Turaco Gold Ltd
- Includes 100% ownership of Satama Permit and 65% (with options) of Bouake North Application
- Historic drilling highlights high-grade gold intercepts up to 26m @ 4.82g/t
- Placement of 24 million shares at $0.05 raising $1.2 million at 61.3% premium
- Transaction subject to ASX and shareholder approvals, with a meeting planned for August 2025
Strategic Acquisition in West Africa
Santa Fe Minerals Limited has announced a significant step forward with the binding agreements to acquire the Eburnea Gold Project in Côte d’Ivoire from Turaco Gold Ltd. This acquisition brings under Santa Fe’s control the Satama Permit, held 100%, and the Bouake North Application, initially 65% with options to increase to 80% and potentially 90%. The project lies within a prolific gold belt, with the Bouake North area notably situated 35km along strike from Endeavour Mining’s Lafigue Gold Mine, a 3 million ounce deposit.
Promising Historical Exploration Data
The Eburnea Gold Project has been explored through various phases of soil geochemistry, geophysics, and drilling by Turaco Gold. The Satama Permit features a mineralised corridor exceeding 20km in strike length, with historic drilling revealing impressive intercepts such as 26 meters at 4.82 grams per tonne gold and 30 meters at 1.92 grams per tonne. These results, combined with geophysical surveys indicating parallel mineralised structures, suggest substantial upside potential. The Bouake North Application has also returned significant gold mineralisation, including a standout 3 meters at 35.79 grams per tonne from reconnaissance drilling.
Capital Raise and Transaction Structure
To fund the acquisition and subsequent exploration, Santa Fe has secured binding commitments for a placement of 24 million shares at $0.05 each, raising $1.2 million before costs. This price represents a 61.3% premium to the last closing price, signaling strong investor confidence. The transaction includes issuing 12 million shares and 4 million performance rights to Turaco Gold as consideration, with performance milestones tied to resource estimates of 500,000 and 1,000,000 ounces of gold. Directors will also receive shares and performance rights subject to shareholder approval.
Regulatory and Shareholder Approvals Ahead
The acquisition is contingent on multiple conditions precedent, including ASX and shareholder approvals, confirmation of tenure security in Côte d’Ivoire, and the successful completion of the placement. Santa Fe plans to convene a shareholder meeting in August 2025 to seek approval for the share issues and the adoption of an employee securities incentive plan. The company also assumes a 2.5% net smelter royalty payable to Resolute Mining over the Satama Permit, adding a layer of complexity to the deal.
Looking Forward – Exploration and Growth Potential
Santa Fe intends to launch an extensive exploration program, including infill and deeper reverse circulation drilling to better define high-grade shoots and parallel mineralised zones. Additional geophysical surveys will aim to refine targets along the mineralised corridor. The acquisition positions Santa Fe to potentially unlock a significant gold resource in a highly prospective West African region, with the performance rights structure incentivising rapid resource delineation.
Bottom Line?
Santa Fe’s acquisition and premium placement mark a pivotal moment, but exploration success and shareholder backing will be key to unlocking Eburnea’s value.
Questions in the middle?
- Will Santa Fe secure the necessary shareholder and ASX approvals without delay?
- How quickly can Santa Fe advance drilling to convert historic data into a JORC-compliant resource?
- What impact will the assumed net smelter royalty have on project economics and future partnerships?
