Cradle Arc PLC said Sept. 10 that its Caracal Gold Mali SARL unit entered into a deal with Indiana Resources Ltd. unit Mukuyu Resources (Mali) Ltd. for the latter to earn up to a 65% joint venture interest in the Kossanto West gold project in Mali.
The deal allows for the London-listed junior explorer to advance its West Africa gold assets while maintaining its primary focus on developing the Mowana copper mine in Botswana. In May, Randgold Resources Ltd. terminated a joint venture deal over the Kossanto West project.
Indiana Resources will fund all costs up to and including the completion of a feasibility study to earn the stake.
After the earn-in is complete, costs will be split according to their respective participating interest, and Caracal will hold the permits until the joint venture committee forms a new company for the mine's development. Once a joint venture company is formed, Caracal Gold will transfer the permits to the new company. The Cradle Arc and Indiana Resources units will control 90% of the joint venture company in line with their respective interest, and the Mali government will hold 10% of the entity.
Over the first 12 months of the deal, Indiana Resources is expected to conduct geological mapping, with potential follow-up pitting and trenching activities and reconnaissance drilling.