Oriole Resources has signed a joint venture (JV) agreement with AGEM Senegal Exploration Saur, a wholly owned subsidiary of Managem Group, for the Senala gold project in eastern Senegal, replacing the former option agreement.
Under the terms of the JV agreement, AGEM will introduce $212,000 of working capital into a new joint venture company, taking its ownership to 60%.
The Senala exploration licence will be transferred to the JVC, with Oriole holding an effective 34% interest through its 85% subsidiary, Stratex EMC Sàrl.
A standard contribute-or-dilute mechanism applies.
Should Oriole’s equity interest be diluted below 10%, it will convert to a 2% net smelter return royalty.
AGEM is entitled to the same terms if it is the diluting party.
It said an estimated $2 million work programme is expected to commence in August 2026, including 3,000 metres of diamond drilling at the Fare prospect and 10,000 metres of auger drilling at the Baytilaye and Konkonou targets.
The company is not currently planning to participate in the funding, and its interest is expected to be diluted accordingly.
“The completion of the joint venture agreement with our partner Managem is a major milestone for the Senala project as it paves the way for a detailed, soon-to-be-commenced phase exploration programme,” said company chief executive Martin Rosser.
He said that the licence is situated within a notable gold district hosting several multi-million-ounce discoveries, including Managem’s operating Boto gold mine located 15 kilometres away.
Mathew Nyaungwa, Editor-In-Chief, Rough & Polished
