Predictive Discovery Ltd’s (ASX:PDI) joint venture with Canada-based Progress Minerals International Inc is now underway in Burkina Faso.
The joint venture aims to advance towards a multi-pit mine development on Predictive’s gold prospects in the West African country, covering a regional ground position of circa 1,000 square kilometres.
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 very pleased that the Burkina Faso joint venture is now underway.
“Progress have proved themselves to be a reliable and cost-effective partner in Cote D’Ivoire and we look forward to a rapid acceleration in exploration activities in Burkina Faso generating strong newsflow to add to results from our highly prospective Cote D’Ivoire exploration ground portfolio.”
Joint venture terms
Progress can earn a 70% interest in the project by funding a US$5 million (A$6.5 million) program of exploration and evaluation in four years.
The Candian company can earn an initial 51% interest by spending US$1 million (A$1.3 million) by 30 September 2018.
Progress will make a transfer of US$100,000 in the next three days to Predictive’s Burkina Faso subsidiary to cover costs dating from 1 October 2017 and for ongoing costs of the joint venture.
Importantly, Progress has committed to sign a drill contract in the December quarter to test high priority drill targets and to commence the drilling program no later than January 2018.
Waiver of a condition precedent
One condition precedent (CP) remained outstanding for the Burkina Faso joint venture i.e. provision of evidence that Progress had raised US$1.5 million purely for Burkina Faso.
Progress has since advised that they are working on a larger financing to cover their entire portfolio, which is not yet complete.
In the interim and in the interest of getting field work started now that the rainy season is over, Predictive has waived this last CP in exchange for a series of contracted commitments.
This includes maintenance of a month-end US$100,000 cash balance in Predictive’s Burkina Faso bank account and advancing the value of all contract commitments to that account.
These commitments will enable Predictive to commence drilling activities soon and ensure that there are no further delays to the Burkina Faso work program.