Mr. Richard Clark reports
ORCA GOLD ANNOUNCES PERSEUS MINING AS A NEW SHAREHOLDER AND PROVIDES CORPORATE UPDATE
Orca Gold Inc. has welcomed Perseus Mining Ltd. as a new strategic shareholder and has provided a corporate update.
Perseus Mining is a 500,000-ounce-per-year gold producer that operates three mines in West Africa. Confirmed by its announcement today (see Perseus release for details), Perseus has purchased a 15-per-cent shareholding interest in Orca from Resolute Mining Ltd. (RSG). In addition to this purchase, Perseus has also agreed to provide Orca with a $5-million (U.S.) short-term loan facility, which will mature on June 30, 2022, with interest charged at a rate of 7.5 per cent 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 toward a possible transaction to acquire the balance of the outstanding securities of Orca.
On Jan. 16, 2022, the first civilian flight, operated by Blue Bird Aviation in Khartoum, successfully landed on Block 14's 1,700-metre airstrip, located eight kilometres 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 seven km fencing around the project's resources is continuing 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 Sept. 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 multimine 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's 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 chief executive officer of Orca Gold. "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."
About Orca Gold Inc.
Orca Gold 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 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-per-cent-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.
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