Trident seal deal for Dandoko gold project royalty

Trident Royalties, a UK-based company, has entered into an agreement to acquire a 50% stake in a 2% net smelter royalty (NSR) in the Dandoko gold project permit area located in western Mali.

The Dandoko project is owned by B2Gold, a company with significant operations in the mining industry. The Dandoko project is situated 25km away from B2Gold’s Fekola Mill, a major asset of the company. B2Gold’s Fekola Mill has been a significant contributor to the company’s gold production. It produced nearly 600,000 ounces of gold last year, accounting for over 50% of B2Gold’s total gold production of 1.03 million ounces.

Dandoko project

The Dandoko project is expected to have similar metallurgical characteristics to Fekola, making it feasible to process the extracted minerals at the Fekola Mill. B2Gold has conducted a study that supports the possibility of near-term production by transporting saprolite material from the Anaconda and Dandoko areas to the Fekola Mill. The company has allocated $79 million for the first phase of saprolite mining from these regions. Saprolite refers to a weathered material that can be more easily processed compared to unweathered rock.

Dandoko was initially a key asset of Oklo Resources, a company that B2Gold acquired in September of the previous year for approximately $58.49 million. As part of the acquisition agreement, Trident Royalties will pay $3 million in cash and issue $750,000 worth of its shares to the sellers. Additionally, Trident will make additional cash payments of $1.25 million upon the first royalty receipt and $1.25 million upon the sale of 500,000 ounces of gold from the royalty area. This payment structure is designed to align with the project’s milestones and development progress.

Trident’s CEO, Adam Davidson, expressed his confidence in the acquisition, highlighting the attractiveness of the Dandoko royalty due to its association with a well-established producer, its proximity to existing processing infrastructure, its demonstrated potential for production in the near term, and the exploration opportunities it offers.

However, the completion of the transaction is contingent upon obtaining consent from B2Gold’s subsidiary, Africa Mining SARL, which holds the Dandoko license. This consent is a necessary regulatory step to finalize the acquisition.