African miner Goldplat plc (LON:GDP) said Ashanti Gold Corp. (CVE:AGZ) has exercised its initial option to earn up to a 51% interest in Goldplat’s interest in the Anumso gold project in Ghana.
In line with this, Ashanti is obliged to either expend US$1.5 mln on the project within the following 12-month period, or pay the deficiency to Goldplat.
This exercise option follows an initial six-month review period whereby Ashanti had the option to decide if it wanted to withdraw from the agreement, but the company decided to continue with the option.
Following the initial option period, and providing the requisite funding requirements are met, Ashanti will have an option to buy an extra 24% of Goldplat's interest in Anumso, if it invests a further $US1.5mln in the following 12 month period, or by paying the deficiency to Goldplat.
In total the company has the right to earn 75% of Goldplat’s stake in the project in return for spending US$3mln over the next two years.
Goldplat’s chief executive, Gerard Kisbey-Green, said: “The working relationship between the two parties is very good and the work done by Ashanti to date has already enhanced the understanding of the potential of the project.
“This agreement ensures we maintain strategic exposure to this prospective asset whilst Ashanti assumes the capital and operational responsibilities, and with their competencies already proven, we look forward to continuing to support Ashanti as they advance Anumso."
Shares in Goldplat rose 4.13% to 8.20p in afternoon trading.