Arrow Minerals Ltd (ASX:AMD) has started its partnership with Roxgold Inc (TSE:ROXG) (OTCMKTS:ROGFF) for the Hounde South Gold Project in Burkina Faso after the Canadian-based company satisfied all conditions precedent to a definitive earn-in agreement.
Roxgold can earn a 70% interest in the project after exploration expenditure of up to US$1 million (around A$1.4 million) in two stages over four years.
The project consists of two exploration licences, Fofora and Konkoira, adjacent to Roxgold’s Boussoura permit in southwest Burkina Faso.
“Prospectivity of permits confirmed”
Arrow managing director Howard Golden said: “Arrow is very pleased to formally begin this exciting joint project with Roxgold in Burkina Faso.
“We have been enthusiastic about this section of the Hounde belt since we targeted the area in 2016.”
Golden said the prospectivity of the permits was confirmed by Roxgold’s recent announcement in July of broad high-grade gold intersections at its adjacent Boussoura project.
He said: “Arow can now continue to focus its resources on its more advanced projects including the recent Dassa gold discovery, while working with Roxgold, a well-respected and successful miner and explorer with great experience in Burkina Faso.
“Roxgold owns the Yaramoko gold mine in the same geological belt as Hounde, as well as active exploration projects in Burkina Faso.”
Arrow and Roxgold tenement locations
Under the agreement, Roxgold can acquire an initial 51% interest in the project with the option to increase its interest to 70% through exploration expenditure as follows:
- First earn-in stage – Roxgold earns 51% interest by spending US$600,000 (around A$0.85 million) over two years from the effective date (7 August 2020);
- Second earn-in stage – Roxgold may increase its interest to 70% by spending US$400,000 (around A$0.6 million) over the following two years; and
- Roxgold and Arrow will form a joint venture where both companies contribute according to their interest for the remainder of the project life.