Indiana Resources Ltd has reportedly inked a non-binding joint venture (JV) agreement with Altus Strategies PLC, a Toronto and London listed company focusing mostly on African exploration projects. The JV would be covering exploration licenses in West Africa’s Mali Gold Belt.
Citing reliable sources, the Tabakarole and Lakanfla gold projects are situated strategically near the existing exploration project of Indiana in Mali. The company would apparently have the option to earn up to 85 percent interest in Legend Mali Inc, an Altus subsidiary, which is owning the Tabakarole project in southern part of Mali and the Lakanfla project in Mali’s western region.
Chris van Wijk, CEO of Indiana Resources, said that with this JV Indiana would be well-positioned for identifying and testing high-priority targets on its highly attractive land package in Mali.
Sources mentioned that finalizing the agreement would be subject to due diligence, necessary regulatory approvals and Indiana providing notice to Altus, within an exclusivity period of 60 days, that it has raised a minimum of US$1 million to complete stage one of the JV agreement.
Speaking on the different stages of the JV, sources said the stage consists of India having the right to earn a 25% interest initially by undertaking 3,000 meters of drilling at Lakanfla project, along with concluding an exploration program, within 12 months of entering into the agreement, at Tabakarole.
Stage 2 would involve Indiana gaining the right to increase its interest to 51% buy executing 9,000 meters of drilling at Lakanfla or publishing resources of over 1 million ounces of gold within the minimum agreed grade.
Further, in Stage 3 Indiana would be able to increase its interest to 70% by completing a definitive feasibility study at Lakanfla, as well as publishing a maiden JORC compliant mineral resource within 24 months of deciding to enter stage 3, if it wants to continue with the Tabakarole project. Indiana would later, in Stage 4, be able to increase its interest to 85% by producing gold on either project within 24 months of deciding to enter stage 4.