PERTH (miningweekly.com) – Junior Indiana Resources has signed a nonbinding term sheet to form a joint venture (JV) with Aim- and TSX-listed Altus Strategies for exploration licences in the Mali gold belt.

Under the terms of the agreement, Indiana could earn an 85% interest in the Lakanfla and Tabakarole gold projects, in western and southern Mali respectively, by reaching a number of earn-in milestones.

The company could earn its first 25% stake by undertaking 3 000 m of drilling at the Lakanfla project, and completing an exploration programme at the Tabakarole project within 12 months of signing the JV agreement. Altus will also receive $100 000 worth of Indiana shares.

The Stage 2 earn-in would see Indiana increase its interest in the projects to 51%, by undertaking 9 000 m of drilling at Lakanfla or publishing a Joint Ore Reserves Committee- (Jorc-) compliant resource of more than one-million ounces of gold, as well as conducting 2 500 m of drilling at Tabakarole, within 18 months of electing to enter Stage 2.

Altus would further receive $100 000 in cash and $200 000 worth of Indiana shares.

The Stage 3 earn-in, which will take Indiana’s stake in the project to 70%, would see the junior completing a definitive feasibility study at Lakanfla, and publishing a maiden Jorc-compliant resource at Tabakarole within 24 months of electing to continue its investment.

Altus again would receive $100 000 in cash and $200 000 worth of Indiana shares.

In Stage 4, Altus would have the option to co-finance mine construction, or to grant Indiana the right to sole finance this stage of the project, allowing the company to increase its shareholding in the projects to 85%, by starting gold production at either of the projects within 24 months of electing to earn-in to Stage 4.

Meanwhile, Indiana on Friday told shareholders that it would place up to 12-millions shares, at 5c each, to sophisticated investors to raise A$600 000. The shares will be issued under the company’s existing placement capacity.