VANCOUVER, BC, Jan. 31,
2022 /CNW/ - Orca Gold Inc. (TSXV: ORG)
("Orca" or the "Company") is pleased to welcome Perseus
Mining Ltd. as a new strategic shareholder and provides a corporate
update.
Perseus Mining Ltd. (ASX/TSX: PRU) ("Perseus") is a 500,000oz
per year gold producer that operates three mines in West Africa. Confirmed by their announcement
today (See Perseus Release for details), Perseus has purchased a
15% shareholding interest in Orca from Resolute Mining Limited
("RSG"). In addition to this purchase, Perseus has also agreed to
provide Orca with a US$5 million
short-term loan facility, which will mature on June 30, 2022 with interest charged at a rate of
7.5% per annum. The proceeds from the loan will be used as working
capital and for continued exploration and development activities at
Block 14. This strategic share acquisition and loan facility
positions Perseus to complete its evaluation of Sudan and the Block 14 Gold Project towards a
possible transaction to acquire the balance of the outstanding
securities of Orca.
On January 16, 2022, the first
civilian flight, operated by Blue Bird Aviation in Khartoum, successfully landed on Block 14's
1,700m airstrip, located 8km from the
development camp and primary resource, Galat Sufar South (GSS). The
passengers on the flight included senior management from Orca and
senior government representatives from the Ministry of Minerals.
The establishment of the airstrip shortens the journey from
Khartoum to Block 14 from two days
by car to two hours by plane.
Phase I of Block 14's 100-man development camp is near
completion and will be ready for move-in in a few weeks. At the
same time, a 7km fencing around the project's resources is ongoing
and is scheduled for completion in Q2 2022.
Block 14 is one of the leading gold development projects in
Africa, with an average projected
production rate of almost 230,000 ounces of gold per annum for the
first seven years and an all-in sustaining cash cost of less than
$800 per ounce (See Company news
release on September 14, 2020).
"On behalf of the Board and our team at Orca, we welcome Perseus
as a shareholder. We are happy that Sudan's potential is being recognized by a
multi-mine African gold producer. While there is no assurance that
a larger transaction will transpire, we are confident that should
it proceed, the Block 14 project and our investment in Montage Gold
Corp. will add significant value to Perseus' project and
development portfolio. A potential combination would also better
position Block 14 for continued development and achieving
production for the benefit of the people of Sudan." commented Richard Clark, President and CEO of Orca Gold
Inc. "I also want to extend our sincere gratitude to his
Excellency, the Honourable Minister of Minerals, Mohamed Bashir Abu Numo, for his continued
support in our efforts to advance Block 14 to the next stage and
for his advocacy of foreign investment in Sudan's prolific resource potential."
On behalf of the Board of Directors,
"Richard P. Clark"
Richard P. Clark| CEO &
Director | Orca Gold Inc. | 604.689.7842
About Perseus Mining Ltd.
Perseus Mining Limited (ASX/TSX:PRU) is an
Australia-based company engaged in
gold production, mineral exploration and gold project development
in the Republic of Ghana and the
Republic of Cote d'Ivoire, in
West Africa. The Company produces
500,000 oz of gold per year from three operations, including the
Edikan, Sissingué and Yaouré mines. At 30 June 2020, Perseus's global Ore Reserves
totalled 3.3 million ounces of gold while Mineral Resources
included 7.1 million ounces of gold.
About Orca Gold Inc.
Orca Gold Inc. (TSX-V: ORG) is a Canadian resource
company focused on exploration and development opportunities in
Africa. Led by a board of
directors made up of industry experts and a management team with a
track record of discovering and building significant mines
globally, Orca is developing one of the leading gold projects in
Africa. The Company is currently
focused on its 70%-owned Block 14 Gold Project in the Republic of
the Sudan on which a Feasibility
Study was completed in November 2018
and revised in September 2020.
Cautionary Statement Regarding Forward-Looking
Information
Certain information contained in this
press release constitutes "forward-looking information",
within the meaning of applicable Canadian and U.S. securities laws.
Generally, these forward-looking statements can be identified by
the use of forward-looking terminology such as "plans",
"expects" or "does not expect", "is expected", "budget",
"scheduled", "estimates", "forecasts", "intends", "anticipates" or
"does not anticipate", or "believes", or variations of such words
and phrases or state that certain actions, events or results "may",
"could", "would", "might" or "will be taken", "occur", "be
achieved" or "has the potential to". The forward-looking
information contained herein is provided for the purpose
of assisting readers in understanding management's
current expectations and plans relating to the future. Readers
are cautioned that such information may not be
appropriate for other purposes.
Forward-looking statements contained in this press release
may include statements regarding a potential transaction with
Perseus, the completion of a development camp, the future operating
or financial performance of the Company and the financial metrics
reported in our feasibility study, which involve known and unknown
risks and uncertainties which may not prove to be accurate. Actual
results and outcomes may differ materially from what is expressed
or forecasted in these forward-looking statements. Such statements
are qualified in their entirety by the inherent risks and
uncertainties surrounding future expectations. Among those factors
which could cause actual results to differ materially are the
following: the requirement for regulatory approvals;
enhanced uncertainty in global financial markets as a result of the
current COVID-19 pandemic; unquantifiable risks related
to government actions and interventions; stock market
volatility; regulatory restrictions; that the Feasibility Study may
not represent a viable development option for Block 14 and that the
assumptions set out therein (particularly with respect to the
economics of Block 14) may prove to be untrue or inaccurate; that
actual Mineral Reserves and Resources at Block 14 and the grades
thereof may be less or different in nature than those contained in
the Feasibility Study; that the Company may not meet the production
estimates set out in the Feasibility Study; that the life of mine
at Block 14 may be shorter than anticipated; that the Company may
not receive the necessary permits on time, or at all; risks related
to cost overruns and the changes of the cost of inputs; that the
development and mining of Block 14 may experience delays and may
not proceed on the expected timeline, or at all; that the Company
may develop Block 14 in a different manner than is set forth in the
Feasibility Study and other risk factors listed
from time to time in our reports filed with Canadian securities
regulators on SEDAR at www.sedar.com. The
forward-looking statements included in this press release are made
as of the date of this press release and the Company disclaims any
intention or obligation to update or revise any forward-looking
statements, whether as a result of new information, future events
or otherwise, except as expressly required by applicable securities
legislation.
Neither the 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.
SOURCE Orca Gold Inc.