(MENAFN- ProactiveInvestors) Shares of (CVE:GOD) rose by a third after the company received half of the second tranche of a US$4250000 total payment for the sale of its wholly-owned Burkina Faso subsidiary Goldrush Burkina SARL to a NordGold NV (LSE:NORD) subsidiary.
In a press release Goldrush said it received US$500000 from the US$1 million held in escrow. A final payment of up to US$500000 is due to be released from escrow on December 31 2017.
Goldrush Burkina holds the Tikare and Kongoussi 1 mineral permits that comprise the Ronguen Project located 10 kilometers northwest of Nordgold's Bissa gold mine and 100 kilometers north of Burkina Faso’s capital Ouagadougou.
Goldrush shall collect a 1% Net Smelter Returns Royalty on any production from the Ronguen Project at a gold price over US$1700 per ounce.
Separately Goldrush has appointed Scott Davis who has accumulated many years of experience in accounting for junior miners as its new chief financial officer. He took over his new duties on July 1. Davis has replaced Scott Hamilton who has taken a position in the oil and gas industry.
Goldrush is Canadian gold focused exploration company boasting over CAD$35 million in operating capital.
Canadian companies are not strangers to Burkina Faso a poor but relatively stable country where the gold mining giant is one of the biggest employers.
There are some 60 mining companies in the area of the Ronguen deposit 20 of which Canadian. The geology is amenable to mining because it is characterized by a flat rocky landscape typical of the Sub-Saharan region known as the Sahel with no jungle making exploration easier than in other parts of Africa.
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