• Asara to acquire Arafura’s Guinea gold permits, expanding exploration to 296 km²
  
• Deal includes S$100 payment, 2% royalty; strengthens position in Siguiri basin
  
• Follows Burkina Faso exit; gold prices up 57% since January boost interest
  

Australian junior miner Asara Resources Ltd has signed a binding memorandum of agreement to acquire 100% of Singapore-based Arafura, which holds the Damissa Koura and Kankan Ouest gold permits in Guinea, the company said on Tuesday.

The deal will expand Asara’s footprint in the West African country, where it is already developing the Kada gold project. Kada, which contains 923,000 ounces of mineral resources, remains the company’s main asset. Acquiring the nearby Damissa Koura and Kankan Ouest permits is expected to increase Asara’s exploration area in Guinea to about 296 square kilometres.

Under the agreement, the seller will receive a symbolic payment of S$100 (about $77) and a 2% net smelter royalty on any future mine production from the assets.

“We are pleased to have secured this opportunity to acquire the Ara Exploration permits which not only significantly expands Asara’s exploration portfolio within the prolific Siguiri Basin of Guinea, but also directly increases the footprint of our flagship Kada Gold Project,” Asara Resources Chief Executive Matt Sharples said.

The transaction follows a Guinea-focused development strategy Asara announced earlier this year after divesting its Kouri and Babonga assets in Burkina Faso.

Like Kada, Damissa Koura and Kankan Ouest lie in the Siguiri basin, a key gold region that hosts advanced projects such as Bankan (Predictive Discovery) and Kiniero (Robex Resources). Asara sees strong exploration potential there, particularly at Damissa Koura, where “extensive artisanal mining operations are well established.”

This growing interest in Guinean gold comes amid a bullish market, with gold prices up 57% since January, according to Trading Economics.

Several steps remain to complete the acquisition, including securing regulatory approvals from authorities in Singapore and Guinea. Meanwhile, Asara plans additional exploration work at Kada to expand its current resource base. The company announced a A$25 million (about $16.5 million) capital raise in July to support ongoing activities at the site.

Aurel Sèdjro Houenou