Altus Strategies signs agreement for JV with Glomin Services

23 August 2019 (Last Updated August 23rd, 2019 14:35)

Africa-focused exploration company Altus Strategies has signed a non-binding term sheet for a joint venture (JV) with Glomin Services on its Lakanfla and Tabakorole gold projects.

Altus Strategies signs agreement for JV with Glomin Services
The agreement highlights Altus to be the operator of the JV during the initial earn-in period. Credit: Ian Sanderson.

Africa-focused exploration company Altus Strategies has signed a non-binding term sheet for a joint venture (JV) with Glomin Services on its Lakanfla and Tabakorole gold projects.

Lakanfla and Tabakorole are located in western and southern Mali.

Once the companies come to a conclusion on the definitive agreement, Glomin will pay Altus approximately $1.45m in cash and Altus will retain a 2.5% net smelter return royalty on the projects.

Under the terms of the agreement, Glomin will have an option to earn 80% interest in Altus’ subsidiary Legend Mali. Through a Malian subsidiary, Legend owns 100% interest in both projects.

Furthermore, Altus will receive $50,000 in cash from Glomin for a 60-day exclusivity period within five days of signing the term sheet.

The agreement highlights Altus to be the operator of the JV during the initial earn-in period.

An initial 5,000m drilling campaign with up to 1,500m at Tabakorole and 3,500m at Lakanfla is planned for the projects.

Altus CEO Steven Poulton said: “Upon entering a definitive joint venture agreement, Glomin will have the option to acquire up to an initial 80% interest in each project by completing a definitive feasibility study.

“Strategically located adjacent to the world-renowned Sadiola gold mine in western Mali, at which oxide resources are reportedly now exhausted, the Lakanfla project contains a major area of historical artisanal gold workings.

In May, the company signed a variation and accession deed with Resolute Mining to extend the companies’ involvement in the 106km² Pitiangoma Est JV in southern Mali until May 2021.

It also signed a non-binding term sheet for a JV with Indiana Resources in February. The terms of the agreement will see Indiana earn up to 85% interest in Altus’ subsidiary Legend Mali (BVI) II.