West African gold developer and explorer Tietto Minerals has provided an update on its JV agreements with B&F Minerals and Gail Exploration in relation to the Abujar gold and Bongouanou Gold Projects in Côte d’Ivoire.
The Abujar gold project comprises three exploration licences comprising the Abujar South, Middle and North tenements.
Tietto Minerals has a 100% interest in the Abujar South tenement, a 90% interest in the Abujar Middle tenement and currently a 15% interest in the Abujar North tenement through its equity interest in Gail Exploration.
Tietto Minerals advised that it has reached agreement with Gail Exploration whereby Tietto Minerals will relinquish its 15% interest in Gail Exploration on the condition that the Abujar North tenement is transferred into a newly incorporated joint venture company (NewCoA) in which Tietto and Gail Exploration will each hold a 50% interest.
Tietto Minerals will pay Gail Exploration US$100,000 as consideration for the increased interest in the Abujar North tenement within 10 business days of the Abujar North tenement being transferred to NewCoA.
Tietto will retain its rights to earn up to an additional 20% interest in the Abujar North tenement by incurring exploration expenditure of US$2 million, which includes the amount spent to date (for a total 70% interest).
Tietto may also earn an additional 10% interest (for a total 80% interest) following completion of a feasibility study and receipt of a mining licence.
Upon signing the updated JV agreement, Tietto Minerals has assumed project management for Abujar North.
With the largely unexplored nature of the Abujar project, Tietto’s imminent plan is to carry
out an aeromagnetic survey, scheduled for June 2018.