Acquisition Risks Loom as Santa Fe Waives Key Security Condition
Santa Fe Minerals has completed its acquisition of the Eburnea Gold Project in Côte d’Ivoire and raised $1.2 million to fund upcoming exploration activities.
- Acquisition of Eburnea Gold Project from Turaco Gold completed
- 100% interest in Satama Permit and 65% in Bouake North Application secured
- $1.2 million capital raising through 24 million shares at $0.05 each
- 12 million shares issued as acquisition consideration plus 4 million performance rights
- Maiden drilling program planning underway at Satama Permit
Acquisition Finalised Amid Waiver of Key Condition
Santa Fe Minerals Limited has officially completed the acquisition of the Eburnea Gold Project in Côte d’Ivoire from Turaco Gold Ltd, marking a significant expansion of its gold exploration portfolio. The deal grants Santa Fe a full 100% interest in the Satama Permit and a 65% stake in the Bouake North Application, covering a substantial 549.5 square kilometres of prospective land.
Notably, the company waived a key condition precedent related to the delivery of a "No Pledge Certificate" from Côte d’Ivoire authorities, which confirms no securities or pledges exist over the shares acquired. To mitigate the risk, Santa Fe secured a supplementary agreement obliging Turaco Gold to assist in obtaining the certificate, remove any encumbrances, and indemnify Santa Fe against any losses arising from non-compliance.
Capital Raising Fuels Exploration Ambitions
Alongside the acquisition, Santa Fe successfully raised $1.2 million through the issuance of 24 million new shares at 5 cents each. This capital injection, led by Trident Capital Pty Ltd, will underpin the company’s planned maiden drilling program at the Satama Permit and support broader exploration initiatives across its asset base.
The acquisition consideration included issuing 12 million shares and 4 million performance rights tied to future resource milestones. Half of these rights vest if a JORC Mineral Resource Estimate exceeds 500,000 ounces of gold, and the other half if it surpasses 1 million ounces, both measured at a 0.5g/t cutoff grade. These performance rights align incentives with the project’s exploration success and potential value uplift.
Strategic Positioning in West African Gold Exploration
The Eburnea Gold Project acquisition positions Santa Fe Minerals as a more prominent player in West Africa’s gold exploration scene, a region known for its rich mineral endowment and growing investor interest. With exploration permits now secured and funding in place, the company is poised to advance its drilling programs and unlock the project’s potential.
While the waiver of the No Pledge Certificate condition introduces some uncertainty, the indemnity arrangements and ongoing cooperation with Turaco Gold provide a degree of reassurance. Investors will be watching closely for early drilling results and updates on the regulatory status of the acquired shares.
Bottom Line?
Santa Fe’s acquisition and capital raise set the stage for a pivotal exploration phase, with market eyes on upcoming drilling outcomes and regulatory clarity.
Questions in the middle?
- When will Santa Fe announce initial drilling results from the Satama Permit?
- What progress has been made in securing the No Pledge Certificate post-acquisition?
- How might the performance rights milestones influence Santa Fe’s share price and investor sentiment?
