(Ecofin Agency) - Alecto Minerals signed with Ashanti Gold a binding option agreement which grants the latter exclusive right to a 65% interest in the Kossanto East project in Mali. The binding agreement concludes the proposals originally set out in the non-binding letter of intent signed by the two firms in August this year.

To acquire the 65% stake, Ashanti Gold has to complete a preliminary feasibility study within a period of 36 months, for the project. If it fails to do so within this period, the firm can also pay Alecto $4 million in cash within 90 days.

During the option period (36 months), Ashanti Gold will be in charge of exploration programmes and the project’s development. Also, once the acquisition agreement is sealed, the two firms will form a joint-venture and contribute, proportionally, to exploration and the project’s development.

“We are delighted that the completion of Ashanti’s legal and technical due diligence has brought us to the point of finalising the option agreement for Kossanto East, and we now look forward to assisting Ashanti to start work on the ground,” says Alecto Minerals CEO Mark Jones

The Kossanto East project is with the Kossanto West project part of the major Kossanto gold project which includes three exploration permits and covers overall about 203 km². Besides this project, Alecto Minerals holds a 100% interest in the Wad Amour project in Mauritania, 70% in the Wayu Boda gold project in Ethiopia, the Matala and Dunrobin projects in Zambia, and the Berboulé project in Burkina Faso.

Louis-Nino Kansoun