Predictive Discovery has signed an earn-in and joint venture agreement with Glomin Services to explore Predictive’s Bocanda Permit and Issia and Tieningboue applications, all located within Cote d’Ivoire.
The new joint venture (JV) will advance exploration on the above permits and applications, with Predictive free carried at 20% until a mining lease is granted.
Following the grant of a mining lease, Predictive will have the option to contribute to future expenses including mine development costs or dilute to a 2% net smelter return (NSR) royalty on future gold production. Glomin may, at any time, repurchase from Predictive half of the royalty for a purchase price of US$10 million reducing the royalty to a 1% NSR.
If Glomin elects to discontinue work on any of the three permits in the first four years from signature of this agreement, the permit in question will be returned to Predictive at no cost.
While Glomin is operating, it will be responsible for ensuring that the permits and applications are kept in good stead with the Cote d’Ivoire Mines Ministry.
“One of Predictive’s strengths in recent years has been its ability to acquire large tracts of highly-prospective gold ground in the Birimian Terranes, which we believe is the best region globally for greenfields gold discovery,” says Predictive Discovery MD Paul Roberts.
“Now that we are firmly focused on our Guinea projects, especially the NE Bankan gold discovery, this new joint venture in Cote d’Ivoire provides ongoing exposure to exploration success on these prospective properties at no cost to Predictive with our joint venture partners managing the exploration activities.
“Greenfields gold exploration is in Predictive’s DNA, so these properties were initially identified using our Predictore system. Now, however, in recognition of the Company’s focus on Guinea, it is important for us to maximise the value of our other West African projects whilst minimising ongoing expenditure wherever possible,” says Roberts.
Glomin will obtain an 80% equity interest in Predictive’s Cote d’Ivoire subsidiary – Ivoirian Resources SARL – by managing and funding exploration activities in two stages.
- Stage 1: Earn an 80% interest by spending at least $200 000 on the Bocanda Permit within the 12 months from agreement signature.
- Stage 2: Exploration activities including, in the event that a successful discovery is made, ore resource estimation and completion of a pre-feasibility study together with grant of a mining lease (known as an exploitation permit in Cote d’Ivoire), while maintaining the properties in good stead through completion of statutory expenditure and reporting on the three properties.