Alecto Minerals has acquired all of the issued share capital of NewMines from Savannah Resources, in a bid to expand its Malian gold portfolio.
The prospective 250km² Karan gold project and the 16km² Diatissan gold project, which are located in western Mali, are controlled by NewMines through the company's wholly-owned subsidiary Tobon Tondo.
The consideration payable to Savannah will be £250,000 payable in 20 million shares priced at 1.25p each. The transaction is part of the company's strategy to build on its existing portfolio of prospective gold projects in Africa.
Disposal of legacy assets is set to increase Savannah's stake in Alecto to 17.9% from 15.75%, and will help the company to focus on Mozambique and develop a pipeline of opportunities.
Alecto chief executive Mark Jones said the acquisition of the Karan project strengthens the company's existing African gold portfolio, which includes the flagship Kossanto gold project.
"At 250km², the Karan project is a large tenement with excellent geophysical and solid gold anomalies as well as widespread artisanal mining operations."
"In 2011, Newmont Mining Corporation obtained its highest bulk leach extractable gold (BLEG) results on the Karan project when it undertook regional exploration. Multiple targets have been identified, with two positioned for near-term drilling," Jones added.
Karan is located in a gold producing region and is claimed to be an advanced exploration project.