Vital Metals Ltd. said Oct. 18 that it signed an exploration agreement with private Turkish company SUMMA, covering three prospective gold permits in Niger held by a SUMMA unit.
The three permits are named Bouli, Tringui-3 and Keradet, with the Bouli permit having the most advanced work and the least exploration work at the Keradet permit. Previous drilling at Bouli has intersected bedrock gold mineralization at three prospects: Petit Druirkou, Burke Burke and Issa.
Under the deal, Vital Metals will undertake an initial six-month work program and spend US$1 million on exploration, including an airborne geophysics program and drilling the Bella Tondi target, which is about 5 kilometers from the Burke Burke prospect.
After the initial six-month period, Vital Metals can elect to withdraw from the agreement or proceed to the deal's next two-year stage, which will see the company spending an additional US$5 million on exploration to acquire a 50% stake in the permits' holding company and form a joint venture with SUMMA.
Upon deciding to mine at the permits, SUMMA can choose to jointly fund future expenditures or withdraw from the project for a 2.5% gross revenue royalty.
Based on its review of exploration over the permits, Vital Metals believes that the properties have the potential to host a resource of 1 million ounces of gold.