Resolute Mining invests A$22 million to acquire 15% interest in Orca Gold

An ASX listed explorer developer and operator, with nine gold mines across Australia and Africa, has made a significant investment to tap into an emerging gold sector in Sudan.

Resolute Mining has announced this week that it has invested around A$22 million to acquire a 15% interest in the Canadian listed Orca Gold.

In a statement released this week the company has agreed to subscribe for 32.4 million new shares in Orca, a company that has been described as a “first mover in the emerging gold industry in Sudan.”

Orca has significant exploration and development mineral properties in North and West Africa, including its principal Block 14 Gold Project, located in Northern Sudan.

Block 14 is one of the leading gold developments in Africa with a Mineral Resource of approximately 3.8 million ounces of gold and an Indicated Resource of 72.7 million tonnes.

The company is currently completing a feasibility study on a development that is expected to deliver annual production of more than 200,000 oz of gold.
 

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Managing Director and Chief Executive Officer, Mr. John Welborn, indicated the investment in Orca was opportunistic and part of Resolute’s ambitious growth strategy: “Orca is a first mover in a region which is host to the largest gold rush seen in Africa in centuries. Sudan’s increasing political stability and highly prospective under explored geology has seen the country rapidly emerge as the second largest producer of gold in Africa.

“Resolute has established an initial strategic interest in Orca and we look forward to working with their well credentialed management team with the aim of collaborating to unlock value.  Ultimately our ambition is to participate in the development of a major new gold mining district consistent with Resolute’s Golden Pride legacy as a successful pioneer of the gold mining industry in East Africa