Panthera agrees to extend Kalaka sale completion date

West Africa and India-focussed gold exploration and development company Panthera Resources announced on Monday that it has agreed with Moydow Holdings to extend the date for completion of the sale of the Kalaka gold project to Moydow to 14 January.

The AIM-traded firm said that, while “substantial” progress had been made, the extension of time was required due to limited progress over the holiday period.

On 22 July, Panthera announced that it had entered into a conditional sale and purchase agreement to divest its interests in the Labola gold project in southwest Burkina Faso, and the Kalaka gold project in southwest Mali, to Moydow.

Moydow agreed to issue three million shares and pay $0.35m (£0.26m) in cash as consideration for the divestment of its interest in the Labola and Kalaka projects.

Part of the cash consideration, totalling $0.15m, was deferred until 31 March.

“The transfer of Panthera's interest in the Kalaka project to Moydow remains in progress pending an internal corporate restructure by Panthera,” the board said in its statement.

“On 26 November, the company advised that it had entered into a further variation agreement with Moydow, who have now advanced a further $90,000 of the deferred consideration with the proceeds applied to the Kalaka IP survey in December.”

Panthera said that if the transfer of its interest in the Kalaka project to Moydow completed on or before 14 January, or such other date as agreed, Moydow would settle the rest of the deferred consideration of $60,000, and refund to Panthera the 2020 second half historical costs on the Kalaka project, forecast at $115,000, on completion.

“Moydow may elect to waive any conditions, if any, to the transfer of Panthera's interest in the Kalaka project,” the board added.

“If the transfer of the Kalaka project does not occur on or before 14 January, unless extended, Panthera will retain its interest in the Kalaka project and 0.5 million of the share consideration will be rescinded.”

At 1430 GMT, shares in Panthera Resources were up 4.06% at 34.34p.