Columbus Gold Corp. said Aug. 14 that it entered into an agreement with IAMGOLD Corp. to acquire up to a 70% interest in the Maripa gold project in French Guiana.
To acquire an initial 50% stake in the property, the company is required to incur US$5 million in expenditures within five years of the effective date of the agreement and serve as operator.
Following the exercise of the first option, the parties may form a 50/50 joint venture. If IAMGOLD elects not to participate, Columbus Gold will have the right to take a further 20% interest in Maripa by completing a preliminary feasibility study in the next three years.
Should either party's interest in the joint venture dilute to less than 10%, it would be converted into a 2% net smelter return royalty, half of which could be repurchased by the other party for US$3 million.