Discovery brings new partner into Botswana nickel project
PERTH (miningweekly.com) – The share price of ASX-listed junior Discovery Metals Limited (DML) jumped by more than 23% on Wednesday on news that the company had signed a new joint venture (JV) deal over its Dikoloti nickel project, in Botswana.
DML and its JV partner Japan Oil, Gas and Metals National Corporation (Jogmec) have agreed to allow Botswana’s BCL Limited to earn a 51% stake in the project.
Jogmec currently holds a 72% interest in the Dikoloti project, after acquiring an initial 60% from DML in 2009, and subsequently increasing its holding in the project.
DML said on Wednesday that BCL would only gain a participating interest in Dikoloti if the company was able to convert the current prospecting licence into a mining licence, under Botswana law.
If the company was able to convert the licence before the end of this calendar year, or a date agreed upon by the JV parties, BCL would have earned its participating interest. This would result in Jogmec’s ownership declining to 35.5%, while DML would retain a 13.7% interest in Dikoloti.
BCL would subsequently act as the operator of the project.
The three JV parties would thereafter continue exploration work, with each party responsible for funding the work on a pro rata basis.
DML told shareholders that the new JV underscored the potential value of the Dikoloti project, which currently comprises three prospecting licences covering 283 km2. The project currently hosts an inferred resource of 4.1-million tonnes grading 0.7% nickel, 0.5% copper and 1.2 g/t platinum-group elements.
DML shares were trading at a high of A$0.037 a share on Wednesday, up from an opening price of A$0.028 a share.
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