NEWCREST MINING The Australian company has been involved in a new joint venture with Kodal Minerals, acquiring a significant portfolio in West Africa
The joint ventures (JVs) secured by London-headquartered mineral exploration and development company Kodal Minerals with gold producer Resolute Mining and Australia-based mining corporation Newcrest Mining, following its May acquisition of Perth-based precious metals explorer International Goldfields’ 1 845 km2 portfolio in West Africa, validate the quality of the ground selection and the company’s strategy.
This is according to Kodal chairperson David Jones, who says: “We are looking forward to . . . furthering our business model of identifying projects with potential and sourcing experienced and well-resourced mining operators as JV partners to drive their development.”
The West African portfolio includes eight mineral licences and two licence applications, covering a collection of highly prospective gold exploration targets in Côte d'Ivoire and Mali on the Birimian greenstone belt.
Jones also noted that Kodal was keen to work with someone of newly appointed Newcrest CEO Bernard Aylward’s proven ability.
“I am looking forward to assisting in [Kodal’s] diversification strategy and continuing the strategy of acquisition with early low-cost exploration,” states Aylward, who replaced Markus Ekberg.
He explains that the projects generated to date are of a quality that has attracted partners with proven gold pedigrees, which have agreed to invest up to 4.7-million in exploration and development finance, “allowing us to free-carry on the potential upside”.
Newcrest will form part of an existing JV and farm-in agreements on four licensed areas along with Resolute.
Newcrest has confirmed a farm-in agreement to spend $1.7-million to earn a 75% interest of the Dabakala gold project, in Côte d'Ivoire, while Resolute can earn up to 75% interest over two concessions and one concession application in Côte d'Ivoire through the expenditure of $3-million over four years.
The acquisition saw Kodal buy 100% of the share capital of International Goldfields from gold company Taruga Gold, which is listed on the ASX.
The consideration for the acquisition of £410 000 has been satisfied with the issue of 1.02-billion new ordinary shares to Taruga, representing 0.04p a share. As such, Taruga is left with about 27.15% of the issued share capital of Kodal.
Kodal also raised £680 000 through the issue of 1.7-billion new ordinary shares at a placing price of 0.04p a share to progress its assets in West Africa and Norway, as well as meet the company's working capital requirements.