Pelangio Exploration has signed an option and joint venture agreement with Roscan Minerals Corporation to establish an earn-in arrangement to advance the Dormaa Project in Ghana.
Under the deal, Roscan will fund $2m for exploration that will be completed by Pelangio on the Dormaa Project over three years in order to earn its 50% interest. Roscan also has to pay Pelangio $160,000 over two years.
Pelangio Exploration president and CEO Ingrid Hibbard said: “Unregulated artisanal and mechanised alluvial operations surrounding the property were identified using satellite imagery and appear to be sourced by large gold-in-soil anomalies on the Dormaa Project.
“During the first year of the option agreement, Roscan shall fund $300,000 to cover expanded gold-in-soil geochemical surveys, prospecting and approximately 3,000m of reverse circulation and air core or rotary air-blast drilling to be completed by Pelangio.”
The Dormaa Project is an 86.44km² concession governed by a prospecting licence in the Brong-Ahafo Region of Ghana, West Africa.
Through its indirectly held wholly owned subsidiary Pelangio Ahafo (G) Limited, Pelangio owns 100% interest in the Dormaa Project.
Soil sampling at the site was performed within 2011 and 2013 by Warren Bates, P.Geo.
Chemex Labs at the Kumasi site in Ghana performed assaying of the project.