Vital drops gold project because of “geopolitical tensions”
Mining & Resources
Vital Metals is pulling out of a newly-signed earn-in agreement over the Bouli Gold Project in Niger, citing the African country’s “geopolitical situation”.
In July, Vital announced it would proceed with an agreement to earn 50 per cent of the project, having spent more than $1 million on exploration at Bouli.
Vital’s exploration at the Bella Tondi prospect identified high-grade gold, with visible core detected in core samples.
The company now says it has no further expenditure requirements under the agreement.
Following the $15m sale of the Watershed tungsten project in August, the explorer doesn’t have many projects left — but it is in a strong financial position.
The watershed sale followed “a focussed but unsuccessful effort to attract off-takers for the project” in order to secure project finance.
“Vital has placed itself in a very strong financial position in a weak equity market for junior explorers,” the company told investors in late September.
“Our intention is to carefully conserve our cash position in a market where a large number of projects are being shown to us as project valuations continue to fall.”