Aim- and TSX-V-listed Altus Strategies has signed a nonbinding term sheet agreement with Glomin Services for a joint venture (JV) on Altus’ Lakanfla and Tabakorole gold projects, in Mali.
Once the companies come to a definitive agreement, Glomin will pay Altus about $1.5-million in cash and Altus will retain a 2.5% net smelter return royalty on the projects.
Glomin has the option to earn up to an 80% interest in Altus’ subsidiary Legend Mali, which, in turn, through a Mali-based subsidiary, owns the projects. Glomin can earn this by completing a definitive feasibility study.
Additionally, Glomin will pay Altus $50 000 for a 60-day exclusivity period within five days of signing the term sheet.
Altus will be the operator of the JV during the initial earn-in period.
An initial 5 000 m drilling campaign is planned at the projects. Tabakorole and Lakanfla are two of six projects owned by Altus in Mali.
Historical drilling results for Lakanfla include 26 m at 5.10 g/t gold and 12 m at 9.78 g/t gold.
Historical drilling results for Tabakorole include 60 m at 2.92 g/t gold and 44 m at 3.29 g/t gold.
Altus CE Steven Poulton commented on Thursday that the transaction underscored the company’s strategy of making and monetising discoveries, while growing a valuable portfolio of project equity and royalty interests.
Poulton noted that the Lakanfla project was located adjacent to the world-renowned Sadiola gold mine. He believes the project hosts a potentially substantial karst-style gold target, similar to the pits of the Sadiola mine and the former Tatela mine, located 35 km away.
Tabakorole, on the other hand, targets a shear zone which is reportedly up to 200 m wide and coincident with a 2.7-km-long gold-in-soil anomaly.
Should Glomin withdraw from the JV, it will receive a 0.75% net smelter royalty return on future gold production from the projects.