Acacia Mining proposes joint venture with Sarama Resources

Acacia Mining, formerly African Barrick Gold, has proposed a joint venture with Sarama Resources for the South Houndé gold project in Burkina Faso.

The company said it has entered into an earn-in agreement with Sarama in which Acacia can earn an interest of up to 70% with expenditure of up to $14m for the project.

Acacia has an option to increase its interest to 75% if it satisfies certain conditions in resource delineation.

The project includes seven exploration licences across an 814km2 area.

Sarama has previously identified a number of high-quality exploration targets and includes the 1.5Moz Au Tankoro Resource.

"Acacia's entry into this transaction represents an exciting step in our continued efforts to expand our footprint throughout Africa. We are looking forward to working with the Sarama team, who have a proven track record in achieving results at the South Houndé Project, and we will continue to assess exploration opportunities throughout the region that support our growth strategy,” said Acacia’s chief executive Brad Gordon.