Predictive Discovery Ltd’s (ASX:PDI) partner on the Bobosso Gold Project in Cote D’Ivoire plans to increase its stake to 100% with a C$493,000 payment to Predictive.
Canada’s Progress Minerals Inc aims to pick up the remaining 70% stake in Bobosso project — including Predictive’s 30% equity — once a few administration requirement conditions are met.
READ: Predictive Discovery shares rise after expanding new gold discovery in Cote D’Ivoire
Predictive’s JV partner West African Mine Investment (WAVI) is also set to benefit from a cash payment.
West Perth company Predictive holds 43% of the JV while WAVI has 57%.
Both sellers will receive development payments on up to three mines from Progress, with the payment for the first mine attracting a US$5 million bounty.
The JV partners will split rewards from the Bobosso project according to their 43:57 ratio of interests, with Predictive set to receive US$2.15 million from the first mine and WAVI US$2.85 million.
The duo is set to enjoy a royalty of US$10 per ore reserve ounce of gold, as defined in a bankable feasibility study for a PDI and WAVI permit.
Predictive will receive US$4.30 an ounce to WAVI’s US$5.70.
The Bobosso drilling program now underway is testing possible east-north-east trending zones inferred from joint venture drilling undertaken in December 2017.
Last year’s drilling program of 4,244 metres in 45 holes was followed up by an induced polarisation (IP) survey over the Bobosso prospect in the wet season this year.
Results from the latest program, which will take in 7,500 metres, are expected by the December 2018 financial quarter and will be reported by Predictive as they become available.
READ: Predictive Discovery and partner Toro Gold identify gold anomalies in Boundiali North
Predictive managing director Paul Roberts reported today: “We are pleased to announce that an aggressive drilling program has commenced at Bobosso to follow up on promising drill results.
“The imminent Bobosso payment demonstrates that our prospect generator model is in full operation, allowing the company to de-risk its share in projects such as Bobosso via up-front payments and maintaining payment rights on future mine developments.”
Roberts outlined Predictive’s approach to forming partnership projects to advance opportunities in West Africa in an interview with Proactive Investors Stocktube video channel in August.
READ: Predictive Discovery begins drilling for gold at Kokoumbo project in Cote D’Ivoire
The company’s portfolio includes 12 projects covering 7,500 square kilometres of Côte d’Ivoire, Burkina Faso and Mali.
Another partner in Predictive’s approach is Toro Gold.