Eagle Eye shares rise on Mali gold deal

Eagle Eye shares rise on Mali gold deal 
PERTH (miningweekly.com) − Junior gold explorer Eagle Eye Metals has signed a memorandum of understanding to buy unlisted West African gold company Birimian Gold.

The transaction would see Eagle Eye offer three of its own shares for every Birimian Gold share held, totalling more than 42,8-million Eagle Eye shares.

Birimian Gold holds substantial interest in several highly prospective gold projects in Mali, including the Dankassa and Korindji projects.

“This is an exciting time for Eagle Eye. The acquisition of these gold mining projects in an extremely active exploration and production region is the culmination of a long search by Eagle Eye to acquire a major project with company making potential,” chairperson Wayne Ryder said on Wednesday.

Ryder noted that following the successful completion of the transaction, Birimian Gold’s shareholders Kevin Joice, Hugh Bresser and Mike Haynes would join the Eagle Eye board.

“These outstanding gold areas come with highly qualified industry experts to manage the West African development programme, and who will assist Eagle Eye to get the best out of its existing valuable gold and nickel/cobalt projects in Western Australia.”

The transaction was subject to the completion of a due diligence, as well as shareholder approval.

The market welcomed the news, with Eagle Eye stock more than doubling to 14c a share, from the closing price of 6c a share on March 4.