Indiana Resources Limited (ASX:IDA) has entered into a non-binding term sheet for a joint venture with Altus Strategies PLC (LON:ALS) (CVE:ALTS) covering exploration licences in the Mali Gold Belt of West Africa.
The Lakanfla and Tabakarole gold projects are strategically located near Indiana's existing Mali exploration project.
Indiana will have the option to earn up to an 85% interested in Legend Mali Inc, a subsidiary of Altus, which owns the Lakanfla project in western Mali and the Tabakarole project in the country's south.
Well-positioned to “test high priority targets”
Indiana’s CEO Chris van Wijk said: “This arrangement with Altus follows a joint venture agreed with Cradle Arc PLC last year and is consistent with the company’s stated strategy to increase our interests in Mali, allowing us to methodically continue exploration in the area.
“Coupled with the announcement on non-binding funding proposals, and subject to completion of definitive agreements, the company will be well-positioned to identify and test high priority targets on our highly attractive land package in Mali.”
Key terms of the JV
Finalising the agreement is subject to due diligence, receipt of requisite regulatory approvals and the company providing notice to Altus within a 60-day exclusivity period that it has raised at least $1 million to complete stage 1.
Stage 1 - exploration: Indiana will have the right to earn an initial 25% interest by undertaking 3,000 metres of drilling at Lakanfla project and completing an exploration program at Tabakarole within 12 months of entering the agreement;
Stage 2 - resource definition: Indiana will have the right to increase its interest to 51% by undertaking 9,000 metres of drilling at Lakanfla or publishing a resource of more than 1 million ounces of gold within a minimum grade to be agreed as part of the agreement;
Stage 3 - definitive feasibility study: Indiana will have the right to increase its interest to 70% by completing a DFS at Lakanfla and it if elects to continue with the Tabakarole project, publishing a maiden JORC compliant mineral resource within 24 months of electing to enter stage 3; and
Stage 4 - mine construction: Altus will have the option to co-finance stage 4 pro rata to its interest in the JV or grant Indiana the right to sole finance stage 4 and increase its interest in the projects to 85% by commencing gold production on either of the projects within 24 months of electing to enter stage 4.
Van Wijk continued: “Based on our review of historical data, we believe that Lakanfla hosts a potentially substantial karst-style gold target, analogous to the adjacent FE3 and FE4 pits of the Sadiola mine.
“Separately, the Tabakarole project targets a shear zone which has been mapped for 2.7 kilometres long and up to 200 metres wide.”
- Jessica Cummins