Nexus Gold Signs Definitive Agreement to Acquire Bouboulou Concession, Burkina Faso, West Africa
Tickers: US OTC: NXXGF, TSX.V: NXS, FSE: N6E
Tags: Mining, Gold, Precious Metals, Exploration
Vancouver, Canada – July 11, 2016 – Nexus Gold Corp. (“Nexus” or the “Company”) (TSX-V: NXS) is pleased to announce it has entered into a definitive agreement with Bureau D’Etudes des Geosciences et de L’Environnement (the “Optionor”), pursuant to which Nexus will acquire the right to earn up to 100% interest in the Bouboulou Exploration Permit located in Burkina Faso, West Africa (the “Bouboulou Concession” or “Property”).
Nexus will have an option to acquire up to 75% interest in the Property, in consideration for cash payments of US$500,000 and the issuance of 900,000 common shares of Nexus, over a period of three years. Following the acquisition of a 75% interest in the Property, Nexus will have the option to acquire the remaining 25% interest in the Property through a cash payment of US$1,000,000 with a 1% net smelter return royalty remaining with the Optionor.
The Bouboulou Concession covers an area of 38.3 square kilometers and is located approximately 100 kilometers north by northwest of the capital city of Ouagadougou, Burkina Faso. Exploration on the permit area has been conducted by Boliden (1997 – 1999), Riverstone Resources (2005- 2011) and Roxgold (2011 to 2012). Exploration has consisted of Rotary Air Blast Drilling, trenching, geological mapping, Airborne EM and magnetometer and Radiometrics and reverse circulation and diamond drilling.
Highlights of the previous exploration programs include; surface rock sampling and trenching returning gold grades from 1.09 to 19.16 g/t gold. Four zones of gold mineralization have been identified on the Property termed Koala, Rawema, Bouboulou 2 and Pelgtanga.
Significant Reverse Circulation drilling results include:
|Hole||Azimuth||dip||depth (m)||From||To||(metres)||(g/t Au)||Zone|
Significant Diamond drilling results include:
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The Property is situated at the north end of the Boromo greenstone belt underlain by an alternating sedimentary-basalt-sedimentary-volcanic progression which strikes generally northeast-southwest, and is bisected by the Sabce Shear Zone, which hosts numerous artisanal gold zones over its 120 kilometre length plus the Bissa Mine operated by Norgold.
All securities issued in connection with the acquisition of the Property will be subject to a four-month-and-one-day statutory hold period. The transaction remains subject to the approval of the TSX Venture Exchange, and cannot be completed until such approval is obtained.
Second Tranche Closing
The Company also announces that it has closed a second tranche of its previously announced non-brokered private placement by issuing 2,100,000 units for gross proceeds of $105,000. Each unit consists of one common share in the capital of the Company, and one-half of one share purchase warrant. Each full warrant entitles the holder to purchase one additional common share for $0.075 per share for a period of twenty-four months. All securities issued in connection with the private placement are subject to a four-month-and-one-day statutory hold period.
About Burkina Faso
Burkina Faso is a landlocked nation located in West Africa between Ghana and Mali, the second and third largest gold producing countries on the continent. It is underlain by rocks of the same age and history as its neighbors but it is still relatively under-explored compared to its neighbors. It covers an area of roughly 274,000 square kilometres and has an estimated population of more than 16 million people. The country is pro-mining and has a favorable foreign investment stance.
The country is the fastest growing gold producer in Africa. It is ranked 4th in the continent and 23rd worldwide in Current Mineral Potential Index in the “Survey of Mining Companies 2014” conducted by The Fraser Institute of Canada. Since 2013, there are seven gold mines in production. Other mining resources include manganese, bauxite, copper, nickel, lead, zinc, and limestone/marble.
The country has excellent geological potential. The Greenstone Belts that host all of the major deposits in Ghana and Cote d’Ivoire continue northward into Burkina Faso. Some of the world’s most productive mines are located in West African greenstone belts. These belts cover approximately 3, 000, 000 km², making the area’s exploration potential enormous. Burkina Faso currently accounts for 21% of West Africa’s greenstone belt exposure. Burkina Faso has undergone less than 15 years of modern mineral exploration, remaining under explored in comparison to neighbouring Ghana and Mali; both of which host world class gold mines in the same belts of Birimian rocks.
About the Company
Nexus Gold Corp. is a Vancouver-based mineral resource company that develops precious metal mineral assets in the world’s premier mining districts. The Company is currently concentrating its efforts on the Walker Ridge Gold Project, a drill-ready, multiple-target, Carlin-type gold project located in the Independence/Jerritt Canyon Gold Trend, Nevada, USA and the Bissa West Concession, an advanced exploration project located in Burkina Faso, West Africa. For more information on these projects, please visit the company website at www.nexusgoldcorp.com.
The technical content of this release was reviewed and approved by Warren Robb, P.Geo. a Qualified Person within the meaning of National Instrument 43-101.
On behalf of the Board of Directors of
NEXUS GOLD CORP.
President and Chief Executive Officer
Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release. This news release may contain forward-looking statements. These statements are based on current expectations and assumptions that are subject to risks and uncertainties. Actual results could differ materially because of factors discussed in the management discussion and analysis section of our interim and most recent annual financial statement or other reports and filings with the TSX Venture Exchange and applicable Canadian securities regulations. We do not assume any obligation to update any forward-looking statements, except as required by applicable laws.