Predictive Discovery Ltd (ASX:PDI) has entered into a joint venture agreement with Canada-based Progress Minerals International for Predictive’s eastern Burkina Faso gold exploration permits.
The joint venture aims to advance towards a future multi-pit mine development on Predictive’s gold prospects.
Progress can earn a 70% interest in the project by funding a US$5 million (A$6.3 million) program of exploration and evaluation in three stages.
This will include an expenditure of US$1 million within one year to earn a 51% interest.
Progress can spend an additional US$1.5 million by the end of the second year to increase its equity to 60%.
Furthermore, an additional US$2.5 million expenditure by the end of the fourth year will increase its equity to 70%.
If Progress decides not to continue spending money after achieving a 51% equity, it is obliged to offer its entire interest back to Predictive.
It is worth noting that Progress is Predictive’s current joint venture partner on the Bobosso Project in Cote D’Ivoire.
Paul Roberts, managing director, commented:
“We are pleased to work with Progress Minerals in Burkina Faso as we have found them to be a committed, technically competent and very cost-effective partner on our Bobosso Project.
“We expect that field work in Burkina will commence in the next month and that drilling will be underway by the end of the December Quarter.
“This agreement marks another major step forward in the implementation of PDI’s Prospect Generator strategy, which seeks to advance evaluation of our large and highly prospective gold exploration ground position in West Africa while maintaining substantial equities in the best projects and minimising cash outlays.”
The companies’ joint objective is to advance Predictive’s eastern Burkina Faso prospects as quickly as possible towards a scoping study on a multi-pit mining operation feeding a central mill.