(Ecofin Agency) - Last November, Turaco Gold sealed a deal with Endeavour Mining to acquire the Afema gold project from the biggest gold producer in West Africa. The project, located 120 km from Abidjan near the border with Ghana, could join other Ivoirian gold mines. 

Turaco Gold now holds 51% of the Afema gold project located in southeastern Côte d'Ivoire. The mining firm officially announced the news on April 2, 2024. Turaco noted that it became the majority stakeholder by buying stakes from Endeavour Mining, the largest gold producer in West Africa.

@TuracoGold #ASXNews#Afema Acquisition Completed with Multi Rig Program Underway

✅Completion of the acquisition of the initial 51% interest in the Afema Gold Project, with right to increase to 70%
✅Two drill rigs operating on site drilling diamond holes across various… pic.twitter.com/nvB14S6P7T

— TuracoGold (@TuracoGold) April 2, 2024

A payment of $1.5 million was made in exchange for a subsidiary of Endeavour, along with 46.5 million Turaco shares issued to the company. This allows Endeavour to enter Turaco's capital with a 7% interest, potentially exposing it to the financial benefits of a gold discovery on the Afema project.

In recent months, Turaco has conducted a significant drilling program that is expected to continue in the coming weeks to result in a mineral resource estimate. "The completion of the acquisition of the Afema gold project allows Turaco to rapidly advance the project with drilling to define a maiden JORC mineral resource estimate in the short term, and thereafter to continue to grow that resource," said Justin Tremain, CEO of Turaco Gold.

Turaco recently divested several assets to focus on Afema, a project in which the company could still gain up to 70% interest. The move could accelerate the project's development timeline. The Afema project is located 120 km east of Abidjan near the border with Ghana.

The Ivoirian gold industry has been growing in recent years, a dynamic that should be maintained according to forecasts. The country is expected to produce 50 t and 54 t in 2023 and 2024, respectively.

Emiliano Tossou