Randgold terminates Senegal JV with Goldstone
London-listed exploration company Goldstone has received notice of termination from Randgold Resources with respect to the company’s joint venture (JV) with Randgold pertaining to the Sangola licence, in Senegal.
The West Africa- and Central Africa-focused miner said in a statement last week that the notice period was 90 days and the company did not expect Randgold to undertake any further work on the licence.
While Goldstone did not elaborate on the motivation behind the termination of the JV, the 2013 agreement outlined that if a prefeasibility study indicated that the mining of at least one-million ounces of gold would not be economically and commercially feasible, the JV agreement would cease to have effect.
The parties entered into the agreement in April last year to explore and potentially develop the Sangola gold project, which was located in the south-eastern corner of Senegal in a prolific gold province where more than 30-million ounces of gold had been discovered in the past ten years.
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