Operational update from Golden Saint Resources LON:GSR
a) Update on Exploration Licence renewals
Further to the Company’s announcement on 24 November 2015, Golden Saint wishes to advise thatGolden Saint Resources (Africa) Limited (the Company’s 75% owned subsidiary) is still in the process of submitting all necessary documentation for the renewal of its exploration licences for Tongo and Baja, which have expired, and will shortly commence a similar process for the renewal of its exploration licence in Moa, which will expire on 27 January 2016 (“Exploration Licences”). The Board has been advised by Mr Alimamy Wurie, the Company’s Mining and Business Development Consultant who was previously employed as a Government Mining Engineer in the Sierra Leone Ministry of Mineral Resources, where he served for over 30 years before retiring in 2008 as a Director of Mines, that the licences continue to be valid and that operations can continue while the licence renewal application goes through the following stages:
i. The Mineral Advisory Board (“MAB”) recommends and assesses the application and makes recommendations to the Minister of Mines.
ii. The Minister approves the recommendation of the MAB.
iii. The National Mineral Agency (“NMA”) notifies the applicant about the approval, quoting the new licence fee, and requests for acceptance of the offer.
iv. The applicant accepts the offer in writing.
v. The NMA issues the order to pay based on the new fees.
vi. The applicant makes arrangements for the payments of fees as per the NMA’s instructions.
vii. The NMA prepares the new licence and submits it to the Ministry of Mines, to be signed by the Minister and countersigned by the Permanent Secretary.
viii. The signed licence is handed over to the applicant for it to be registered at the Administrator General’s Office before the new licence becomes valid.
The Board’s experience is that the licence renewal stages listed above can take up to two or more months to be effected once the documentation for an application to renew an exploration licence is received by the MAB. The Board is confident that it has met all the requirements for the Exploration Licences to be renewed but is aware that it might be required by law to reduce the size of its licence areas and that such renewals are subject to approval by the Minister of Mines and the National Mineral Agency in Sierra Leone.The Company anticipates being able to update shareholders in relation to the approval of the Exploration Licences during the first quarter of 2016.
b) Sponsorship of artisanal licence areas
As announced by the Company on 12 August 2014, 14 August 2014 and 16 October 2014, Golden Saint Diamonds SL Ltd (a 75% owned, Sierra Leone, subsidiary of Golden Saint with the minority 25% being held by local people) entered into agreements to sponsor a total of eight artisanal mining licences, five of which (located in the Southern Chiefdom of Makpele, Ngelehun) expired in October 2015 and have not been renewed. The remaining three agreements to sponsor artisanal mining licences in the villages of Rowaka (Chiefdom of Konike Barina in Tonkolili), Gelehun (Makpele Chiefdom) and Mamie (Soro Gbema Chiefdom) are currently valid until 8 August 2017, 7 August 2017 and 7 August 2017 respectively, but may be renewed. The Company confirms that there is currently no ongoing work being progressed under these agreements and therefore the Company does not expect to receive any future revenues from these sponsorship agreements nor does it intend to renew any of these agreements as they fall due unless it is recommended that they do so by Rock Forage Consulting Services, the Company’s technical and exploration consultant. The Company intends to focus its resources going forward on its Exploration Licence areas, in particularly on the Tongo area.
