Predictive Discovery Ltd (ASX:PDI) is strengthening its landholding within the prolific Siguiri Basin in Guinea with the acquisition of Argo exploration permit and granting of the Bokoro exploration permit.
Argo and Bokoro are directly along strike from Bankan Project and within the Kaninko and Saman permits where the company has continued to expand its gold discoveries through reverse circulation, diamond and power auger drilling.
These new permits will ensure that Predictive can continue to explore for the potential in north-south mineralised zones as well to the north of the NE Bankan prospect and Bankan Creek gold prospect.
With the north-south strike length under its fold, the company’s control over the area has doubled to around 35 kilometres and its total ground position expanded to 358 square kilometres.
Argo includes known artisanal gold workings but both the permits have never been systematically explored.
The Argo permit was granted on October 10, 2018, and is held by Argo Mining SARLU while the Bokoro permit has been granted to Predictive’s local subsidiary Kindia Resources SARLU.
Predictive Discovery’s Guinea portfolio, including the Bokoro and Argo permit locations.
Under the terms of the agreement with Argo Mining, Predictive is entitled to acquire 100% of the permit after completing legal due diligence, which is in progress and satisfying certain conditions.
As a part of the agreement, ownership of Argo Mining will be transferred to an Australian subsidiary in which the original Argo owners will initially hold 100%, while Predictive will manage all exploration activities.
As a part of the deal, the current owners of Argo will receive aggregate payment of up to US$100,000 in three tranches.
After paying an initial US$67,000, Predictive will own 51% of the new company and once the full US$100,000 is paid, it will own a 90% stake.
If a decision to mine is made, Predictive can acquire the remaining 10% in exchange for a 2% net smelter royalty on mine production from the property, half of which can then be acquired by it at any time by payment of US$2 million.
Predictive also has the option to withdraw from the Argo acquisition agreement at the end of the first year after completion of geological, geochemical and geophysical surveys by paying US$33,500.