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VENTURES AFRICA- West Africa focused gold miner, West African Resource Limited said it has completely acquired Channel Resource Limited, a gold explorer in Burkina Faso.
The company in a statement stated that it has issued a 32,036,754 ordinary shares and 14,918,508 three year share purchase warrants exercisable at A0.40 per share to former Channel shareholders.
It had also issued 1,365,000 share purchase options in exchange for Channel options.
Channels shares has since been halted from trading on TSXV immediately pending delisting while West African shares and warrant commenced trading on the TSXVenture Exchange (“TSXV”) this week.
Last year, the company acquired 19.9 percent stake in Channel Resources, signifying the first process in acquiring the gold exploring company.
The acquisition will see Channel’s Tanlouka project become a key part of its Burkina Faso portfolio, West African’s Managing Director, Richard Hyde said.
“Tanlouka is adjacent to our existing Boulsa project and already has a known gold resource,” he explained.
The Boulsa project in Burkina Faso covers 6,370Km2 and 200km of strike length of early Proterozoic Birimian greenstone belts which are prospective for gold mineralisation.
According to him, work will commence at Tanlouka with initial drilling programs focusing on improving the oxide and transitional components of the Mankarga 5 resource.
The company will also be targeting higher grade mineralization at depth with diamond drilling, leading to a resource upgrade by the end of the first quarter of 2014, he said, adding that “Scoping studies will be completed in the first half of 2014 with a focus on creating a low-cost heap leach starter project, targeting near term cash-flow from the combination of West African’s and Channel Resources’ near surface gold assets.”