Australian miner MetalsGrove Mining has signed a binding term sheet with Australian Securities Exchange (ASX)-listed Desert Metals and its subsidiaries to acquire three gold joint venture (JV) permits in Côte d’Ivoire, West Africa.
The acquired permits encompassing the Vavoua, Vavoua West and Kounahiri West projects, collectively known as the Central West Gold Joint Venture (JV), are currently held by Générale des Mines et Carrières (GEMICA), a privately owned company in Côte d’Ivoire.
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Desert Metals holds the right to earn a majority interest in each of the permits under existing JV arrangements.
Under the terms of the deal, Desert Metals will transfer its JV rights to MetalsGrove in exchange for a structured consideration.
This includes an initial A$50,000 ($31,426.3) cash payment upon the grant of the Vavoua licence, followed by another A$50,000 upon the grant of either the Vavoua West or Kounahiri West licence, whichever is first.
Additionally, a milestone-based payment of A$1m will be made upon the estimation of a JORC-compliant mineral resource exceeding 500,000oz of gold (or gold equivalent) with a grade above one gram per tonne, with a maximum payout of A$3m.
Lastly, Desert Metals will receive a 1% net smelter royalty on production from the projects, capped at either A$3m or the royalty amount from the first 125,000oz of gold production, whichever is greater.
This strategic move will enable Desert Metals to focus on its principal Adzope and Tengrela South gold projects.
Desert Metals managing director Stephen Ross said: “Throughout our exploration programmes in Côte d’Ivoire since 2023, we have strategically concentrated our resources and expertise on our two flagship projects: the highly prospective Adzope gold project in the southern region and the advanced Tengrela South gold project in the north.
“While the GEMICA joint venture projects demonstrate significant potential for gold mineralisation, particularly given their location along the same structural corridor as the producing Abujar gold mine, we had earmarked them for future greenfields exploration pending the grant of permits as well as budget allocation.”
The three permits span approximately 950km² and are strategically positioned between 60km and 140km north-east of the operational 3.8-million-ounces Abujar gold mine.
These greenfield projects are pending formal approval and have not yet undergone modern mineral exploration.
The Vavoua permit is due to be officially granted soon following approval by the Interministerial Committee.
MetalsGrove Mining managing director and CEO Lijun Yang said: “This strategic acquisition allows us to leverage our extensive gold exploration expertise within this prolific geological setting.
“With a favourable geological framework, highly anomalous gold results from neighbouring projects and structural insights derived from aeromagnetic surveys, we are confident in the potential to identify significant gold deposits.
“Our initial exploration programme will commence promptly upon the successful completion of the transaction and once permits are granted.”
In December 2023, Desert Metals agreed to acquire Côte d’Ivoire-based CDI Resources.
