ASX-listed Graphex Mining has acquired Glomin Services' joint venture (JV) earn-in rights on Aim- and TSX-listed Altus Strategies' 100%-owned Lakanfla and Tabakorole gold projects, in western and southern Mali, respectively.

Graphex can earn up to an 80% interest in each project by completing up to four key stages culminating in a definitive feasibility study. Altus will retain a 2.5% net smelter return (NSR) royalty on the projects.

"We are confident Graphex has the necessary operating experience, technical skills and shareholder support to realise the potentially significant value in these projects," says Altus CE Steven Poulton.

Altus has signed a JV agreement and a royalty agreement with Graphex and a JV termination agreement with Glomin. Glomin is expected to receive shares in Graphex in exchange for its JV interests in the projects.

The Graphex JV is primarily based on the commercial terms as those previously signed with Glomin, as announced by the company in December 2019.

The JV is staggered into four stages, with Stage 1 to entail exploration that is expected to be completed by August 31. This will include 3 500 m of drilling on Lakanfla and 1 500 m drilling on Tabakorole, followed by publishing a Joint Ore Reserves Committee- and National Instrument 43-101-compliant resource within 60 days of completing the drilling activities. On completion, Graphex will be entitled to a 33% interest in both projects.

Stage 2 will entail resource definition and will be undertaken within 18 months of Graphex having given a Stage 2 election notice. If completed, Graphex will earn a further 18% interest in the projects, taking its stake to 51%. It will involve 9 000 m drilling on the Lakanfla and 2 500 m of drilling (less any excess metres drilled during Stage 1) on Tabakorole.

The agreement also requires that no less than $2.5-million of nondrilling expenditure in aggregate is spent at Tabakorole during Stage 1 and Stage 2.

Stage 2 will also involve the payment to Altus of either $200 000 in cash, or $100 000 in cash and $200 000 in Graphex shares.

Stage 3 will involve additional expenditure and will take place not later than 42 months from the end date. Graphex will earn a further 19% interest in the projects, if completed. This stage involves $3-million expenditure on each of the two projects, and will see the payment to Altus of either $150 000 in cash or $75 000 in cash and $150 000 in Graphex shares.

Stage 4 will involve a definitive feasibility study, which must be completed within 24 months of Graphex having given a Stage 4 election notice. Graphex will earn a further 10% interest in the project on completion of Stage 4, and must pay Altus either $100 000 in cash or $50 000 in cash and $100 000 in Graphex shares.

If the JV proceeds to Stage 5, which is the construction phase, and if Graphex sole funds that stage, it will pay Altus an additional $1-million in cash, or $500 000 in cash and $750 000 in Graphex shares. Altus' shareholding will be diluted in proportion to the total amounts expended by Graphex during JV Stage 5.

Altus will retain a 2.5% NSR on each project, which may be reduced to 1% in return for cash payments in certain circumstances.