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Australian firm, Canadian miner join hands to develop gold project in Sudan

May 31, 2018 (KHARTOUM) - The Australian gold miner Resolute Mining this week struck a 22.5 million Australian dollar deal with the Canadian Orca Gold, subscribing for 32.4-million of its shares in gold activities in Sudan.

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FILE - Smoke rises after a blast in a quarry at the Ariab mine September 28, 2011 (Reuters)

"This strategic investment by Resolute demonstrates and supports a rapidly growing international mining interest in Sudan," said Ocra in a statement released on Monday 28 May.

In line with the deal, Resolute will own 32,364,960 shares of Ocra, representing approximately 15% of its capital.

Gold production is now Sudan’s main source of hard currency after the secession of South Sudan where are the two third of its oil reserves before 2011.

Sudan hopes to increase gold production to more than 140 tons during this year and make Sudan the first gold producer in Africa by 2018.

The Canadian company said with this deal it is now fully funded to deliver a Feasibility Study on its Block 14 Gold Project in Sudan and to expand its exploration endeavours on this 2,170km2 licence.

Ocra is currently completing a Feasibility Study on its 70%-owned Block 14 Gold Project in Sudan.

Also, it is conducting exploration on its gold properties in Côte d’Ivoire.

The deal also enables Resolute to acquire 1,876,422 shares of the Canadian company in connection with the acquisition of two exploration companies located and operating in Côte d’Ivoire.

(ST)