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Letter to Shareholders

September 30, 2020

Dear Shareholder,

It is with great pleasure that I write to you after our successful acquisition of ARX Resources Ltd on September 17, 2020 and the subsequent closing of the C$10,020,000 bought deal private placement of 33,400,000 special warrants of the Company. I wish to thank our shareholders for the support for these initiatives.

The ARX Resources acquisition has ensured the Company’s participation in the development of the substantial Dugbe Gold Project in Liberia which already boasts Mineral Resources of 2.3 Moz Indicated and 1.3 Moz Inferred of contained gold in its resource base, with significant potential to increase this. It is very rare these days to find not one but two open pittable and undeveloped quality gold deposits, these being Dugbe F and Tuzon, anywhere in the world. It is also a tribute to the ARX Executive team led by Ian Stalker who put this deal together along with our partner Hummingbird Resources Plc.

ARX Resources Acquisition

The rationale and strategy behind the ARX Resources acquisition was to bring into the Company, an undervalued and large gold asset that is at an advanced stage of resource development and is a potential near term and significant gold producer. It was recognized early on that the ARX Resources deal concluded with Hummingbird Resources Plc provided that opportunity for shareholders.

Furthermore, the fact that the Dugbe Gold Project has already had a significant spend applied to the development of the 2,355km2 property and in excess of US$70m, is well endowed with over 100+ exploration targets, several of which are drill ready and can be fast tracked to build phase within two and a half years, only serves to further enhance the value of the Company’s option to earn a 49% economic interest


(prior to the issuance of the Government of Liberia’s 10% free carried interest) in the property by delivering a feasibility study and completing a an exploration program on a number of the other exploration targets with a view to substantially increasing the total resource.

Bought Deal Private placement

The Company announced on September 22, 2020 that it had closed its bought deal Private Placement of Special Warrants raising gross proceeds of C$10,020,000 (the “Financing”). The Financing was led by Stifel GMP, on its own behalf and on behalf of a syndicate of underwriters (together with Stifel GMP, the "Underwriters”). The net proceeds of this funding are planned to be used to develop the project through feasibility phase.

Work Program

In keeping with the modus operandi of our technical team, who are already in country and on site, the drilling contractor Cestos Drilling has been commissioned and is in country, the Feasibility Study consultants, DRA Global, have been signed up and are starting work and the Environmental and Social Impact Assessment (ESIA) Study has been awarded to SRK (UK).

The Feasibility study is planned for completion in Q3 2021 targeting a production rate of between 200,000oz pa and 250,000oz pa. Furthermore, a road contractor has mobilised for the rehabilitation of the access road to site and camp infrastructure has been ordered and is on route to site.

Ian Stalker, Chief Executive Officer - Africa

Krisztian Toth, Chairman of the Board


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