UK-listed mining firm, Cradle Arc, has entered into a joint venture agreement with a subsidiary of Indiana Resources, an Australian firm, to develop Cradle Arc’s Kossanto West Gold Project in western Mali, the company said on September 10.
Kevin van Wouw, CEO of Cradle Arc, said in a company statement that the joint venture was in line with the company’s strategy of remaining exposed to its gold prospects in Africa whilst keeping its focus on the primary task of developing Mowana, a copper mining development in Botswana.
“The terms of the joint venture do not require Cradle Arc to fund exploration activities up to the pre-feasibility study (PFS) stage, such that accordingly there will be minimal impact on the company’s balance sheet as we continue to focus on our core asset in Botswana,” said Van Wouw.
Some of the terms of the joint venture are that Indiana Resources will fund all costs up to and including the completion of a pre-feasibility study on the project, and that on completion of a PFS, Indiana Resources will hold a 65% participating interest and Cradle Arc will retain a 35% participating interest in the permits.
All costs thereafter will be split between the JV parties in accordance with their participating interest, Cradle Arc said.
“We are delighted to be working with Indiana Resources through their subsidiary, Mukuyu. Indiana Resources has a high-quality team in place and a complementary portfolio of assets in Mali,” said Van Wouw.
