Cradle Arc has announced that Caracal Gold Mali SARL, its wholly owned subsidiary, has entered into a joint venture agreement with Mukuyu Resources for the exploration and development of Cradle Arc’s 137 km2 Kossanto West Gold Project in western Mali.
This comprises the Kobokoto Est and Koussikoto exploration permits.
Mukuyu is a wholly owned subsidiary of Indiana Resources an ASX listed base and precious metals exploration company.
- Joint Venture formed for the exploration and development of Kossanto West which is in line with Cradle Arc’s stated strategy to retain exposure to its African gold exploration portfolio and potential upside whilst minimising its exploration and development spend
- Pursuant to the terms of the Joint Venture:
- Indiana Resources to fund all costs up to and including the completion of a pre-feasibility study (“PFS”) on the Project
- On completion of a PFS, Indiana Resources will hold a 65% participating interest and Cradle Arc will retain a 35% participating interest in the Permits
- All costs thereafter will be split between the JV parties in accordance with their participating interest
- The permits will continue to be held by Caracal, until such time as the JV Committee establishes a new company (“NewCo”) for the future development of a mine
- On formation of NewCo, Caracal will transfer the relevant Permits to NewCo, with the JV partners expected to hold 90%, in the same proportion as their respective participating interests in the JV, and the Malian Government expected to hold the balancing 10%
- Initial work programme includes further geological mapping of Kossanto West with potential follow up pitting and trenching activities and reconnaissance drilling, which is anticipated to be undertaken by Indiana Resources over the first 12 months
Kevin van Wouw, CEO of Cradle Arc, comments:
“This agreement enables Cradle Arc to advance its highly prospective West African gold assets, whilst maintaining its primary strategic focus on the development of the Mowana Copper Mine.
“The terms of the JV do not require Cradle Arc to fund exploration activities up to the PFS stage, such that accordingly there will be minimal impact on the company’s balance sheet as we continue to focus on our core asset in Botswana.
“We are delighted to be working with Indiana Resources through their subsidiary, Mukuyu. Indiana Resources has a high-quality team in place and a complementary portfolio of assets in Mali.”