AMN - MALI: Caracal and Randgold form Kossanto JV

Alecto Minerals wholly-owned subsidiary Caracal Gold Mali SARL has entered into a joint venture agreement with Randgold Resources (Mali) Ltd for exploration and development of Alecto’s 137sqkm Kossanto West Gold Project in western Mali comprising the Kobokoto East and Koussikoto exploration permits.

The joint venture for the exploration and development of Kossanto West, is in line with Alecto’s strategy to retain exposure to its African gold exploration portfolio and upside generated whilst minimising exploration and development spend

On completion of the Joint Venture:

- Randgold to fund all costs up to and including the completion of a pre-feasibility study on the Project (PFS)

- Randgold will hold a 65% and Alecto will retain a 35% participating interest in the Permits

- On completion of a Prefeasibility Study, all costs will be split between the joint venture parties in accordance with their participating interest

- Permits will continue to be held by Caracal, until such time as the JV Committee forms a new company for the development of a mine

- On formation of NewCo, Caracal will transfer the relevant Permits to NewCo, with the JV partners expected to hold 90%, held in the same proportion as their respective interests in the JV, and with the Malian Government expected to hold 10%

- Initial work program includes further geological and mapping of Kossanto West with potential follow up pitting and trenching and reconnaissance drilling, anticipated to be undertaken by Randgold in the first 12 months.

- Kossanto East, where Alecto has reported positive economics from an internal Scoping Study, with the project subject to a collaboration agreement with Desert Gold Inc, is not included in the Joint Venture and remains wholly owned and operated by Alecto

Alecto CEO Mark Jones says: “We are delighted to announce this important milestone agreement with Randgold, who are the market leaders in the establishment of world class gold projects in West Africa. Utilising Randgold’s expertise and financial muscle to unlock any opportunity allows us to retain exposure to the significant value we believe is available across our African gold exploration tenements, with minimal impact on our balance sheet.

“By bringing in such intellectual capital, and with Alecto not having to fund exploration work, the company has been placed in a strong position to rapidly move its other projects towards development. “The company’s main focus in the near to mid-term is to bring our Zambian gold project, Matala, into production whilst Randgold completes the work at Kossanto West and Desert Gold helps us move towards development at Kossanto East. With a diversified and exciting portfolio, we look forward to updating the market on development progress throughout 2016.”

www.alectominerals.com

News courtesy of International Mining