Australian Miner Metalsgrove Mining has signed a binding term leaf with Australian Securities Exchange (ASX) -Listed Desert Metals and its subsidiaries to acquire three Gold Joint Venture (JV) permits in Ivory Coast, West Africa.
The acquired permits include the Vavoua, Vavoua West and Kounahiri West projects, jointly known as the Central West Gold Joint Venture (JV), are currently in the hands of Générale des Mines et Careers (Gemica), a private company in Côte d’Kerre.
Desert Metals has the right to earn a majority stake in each of the permits under existing JV schemes.
According to the conditions of the deal, desert metals will be transferred to Metalsgrove in exchange for a structured consideration.
This includes an initial A $ 50,000 ($ 31.426.3) in cash payment with the subsidy of the Vavoua license, followed by another A $ 50,000 in the subsidy of the Vavoua West or Kounahiri West license, depending on what the first is.
In addition, a milestone-based payment of a $ 1 million will be made on the basis of the estimate of a JORC-conform mineral source of more than 500,000 oz gold (or gold equivalent) with a number above one gram per ton, with a maximum payment of a $ 3m.
Finally, desert metals receive a net smelter royalty of 1% on the production of the projects, covered with a $ 3 million or the royalty amount of the first 125,000 oz of gold production, depending on what is larger.
With this strategic move, desert metals can concentrate on its most important Adzope and Tengrela South Gold projects.
Desert Metals Managing Director Stephen Ross said: “During our exploration programs in Ivory Coast Since 2023 we have strategically concentrated our resources and expertise on our two flagship projects: the very potential Adzope Gold project in the southern region and the advanced Tegrela Gold Project in the Noordoord.
“Although the Joint Venture projects from Gemica demonstrate a considerable potential for gold mineralization, in particular given their location along the same structural corridor as the producing Abujar Gold Mine, we had reserved them for future Greenfields exploration in anticipation of permits and budget allocation.”
The three permits include approximately 950 km² and are strategically positioned between 60 km and 140 km northeast of the operational Abujar Gold Mine of 3.8 million.
These Greenfield projects are awaiting formal approval and have not yet undergone modern mineral exploration.
The Vavoua permit will soon be officially granted after approval by the intermills committee.
Metalsgrove Minning Director and CEO Lijun Yang said: “This strategic acquisition enables us to use our extensive expertise in the field of gold exploration within this productive geological setting.
