Mako Gold Limited (ASX:MKG) has earned-in a 51% interest on its farm-in joint venture agreement with Occidental Gold SARL, a subsidiary of Perseus Mining Limited (ASX:PRU), for the Napié permit in Cote d’lvoire.
The company is now well on track to take its ownership of the gold project to 75% by completing a definitive feasibility study (DFS).
Under the terms of agreement, Mako had up to three years to spend US$1.5 million on exploration on Napié to reach its first milestone and earn-in 51%.
Exploration has been fast-tracked and Mako has reached that milestone in under two years.
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Mako’s managing director Peter Ledwidge said: “We are pleased to have reached our first milestone on the Napié project in just over one year from listing on the ASX.
“Now that Mako has earned-in 51% of the project, this gives the company a clear path to earning up to 75% upon the completion of a DFS.
“We would like to thank Occidental Gold for their continued support and look forward to continuing our mutually beneficial partnership.”
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With Occidental Gold electing not to contribute to expenditures up to the DFS stage, Mako could earn up to 75% of the Napié project, if the company continues to sole-fund expenditures.
If this is completed, Occidental can elect to contribute post DFS and a joint venture company would be formed between it, Mako and Australian African Investment Fund (AAIF), which has a pre-existing JVA with Occidental.
READ: Mako Gold recommences drilling at Napie Gold Project in Cote d’lvoire
Perseus group exploration manager Doug Jones said: “Perseus recognises the potential demonstrated by results from Mako’s exploration at Napié to date but has decided its primary focus must remain on its core assets.
“We believe the project is in good hands and look forward to continuing positive news flow as Mako advances its programs over the coming months.”
Mako is awaiting assay results from its recent drilling program on the project.
The turn-around of the assay laboratory has been longer than expected as most explorers have submitted their samples to the lab prior to the onset of the wet season.