Waraba Gold inks deal for Somaco Global Resources in Ivory Coast

Waraba Gold has entered into an agreement to acquire a significant stake in Somaco Global Resources, giving it access to promising gold exploration licences in Ivory Coast. Under the terms of the earn-in agreement, Waraba can secure up to an 80% interest in Somaco over the next four years.

Somaco holds two strategic gold licence applications in northern Ivory Coast: the Sirasso licence and the Tengrela & Tiegba licences. The Sirasso licence, covering 369.34 km², is located along the Senoufou greenstone belt and was previously part of a joint venture with Barrick Gold. The Tengrela & Tiegba licences, measuring 398.7 km² and 368.97 km² respectively, are considered highly prospective for gold and manganese due to their proximity to existing gold mines and mineralised shear zones.

Stake agreement

To complete the agreement, Waraba Gold will make an initial payment of $500,000 to Somaco’s shareholders within two months, followed by an additional $1.5 million over two years. The company has also committed to spending $5 million on exploration over four years and will issue six million common shares once a definitive joint venture agreement is signed to secure the full 80% stake. To support these commitments and general working capital, Waraba plans to raise up to $500,000 through non-convertible unsecured debentures. Additionally, Waraba will appoint two nominees from Somaco to its board as part of the agreement, strengthening the strategic alignment between the companies.

Meanwhile, Waraba has faced challenges in Mali, where it has suspended activities at its Fokolore Gold Project due to security issues. The company had previously submitted a letter of intent for a mining permit in June 2024. Waraba remains committed to resuming operations once conditions improve. Recent statements from gold mining CEOs have highlighted the need for revisions to Mali’s new mining code to create a more favorable environment for investment in new projects.