Altus Strategies PLC signed a nonbinding term sheet to sell its contiguous Djelimangara and Sebessounkoto Sud gold projects in western Mali to Desert Gold Ventures Inc.
The company will initially receive 3.0 million Desert Gold shares, currently valued at about C$675,000, US$50,000 cash and a 2.5% net smelter returns royalty.
Desert will secure ownership of the Altus' wholly owned project holding unit Legend Mali Holdings (BVI) Inc., according to the Aug. 28 release.
Altus will receive a further US$100,000 cash and 2.0 million shares on delineation of the first 500,000 ounces of gold and an additional US$100,000 cash and 3.0 million shares on delineation of a second 500,000 ounces.
The company acquired the projects in late 2017 through the acquisition of Legend Gold Corp.
