Oriole Resources PLC on Friday signed an earn-in agreement with BCM International Ltd related to the Cameroonian Bibemi gold project.

Shares in the west Africa-focused gold exploration company were up 14% at 0.20 pence each in London on Friday morning.

In November, Oriole signed two heads of terms deals with the Ghana-based mining and civil contractor relating to earn-ins at the Bibemi and Mbe Gold projects. Oriole holds a 93% and 90% stake in the projects, respectively.

A definitive earn-in agreement between the parties for Bibemi has now been reached, which will earn BCM up to a 50% interest in the exploration project.

In exchange, BCM will be required to spend $4.0 million in exploration costs, alongside future resource-linked success-based payments and a signature payment of $450,000 to Oriole, which the company said is currently being processed.

Of the $4.0 million, $72,000 has already been provided at Bibemi to support camp upgrades and technical studies. Oriole said that it intends to apply for an exploitation licence for the project this year.

The exploration expenditure will go towards ‘resource-expansion drilling’, Oriole said, which the company anticipates will begin within the first quarter of 2024.

The company said that a second agreement for the Mbe project is expected later this month.

Oriole’s Chief Executive Officer Tim Livesey said: ‘We are delighted to have signed the first of two landmark agreements with BCM and to have already established a very close and strong working relationship with our new partner. With our strategies and goals aligned at Bibemi, and also Mbe, we believe this is the start of something significant for Oriole, BCM and for exploration and mining in Cameroon.’

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