15th Sep 2014 09:12
LONDON (Alliance News) - Alecto Minerals PLC Monday said joint venture partner Centamin PLC had agreed to continue to satisfy the initial expenditure commitment at the company's 945 square kilometre Wayu Boda gold project in Ethiopia after completing an exploration programme.
Under the terms of the Wayu Boda joint venture agreement, Centamin is required to fund exploration costs of USD1.8 million over two years in order to maintain an initial 51% interest in the project.
The joint venture agreement also extends to Alecto's 1,954 square kilometre Aysid Metekel gold project in north-west Ethiopia. Centamin in June indicated that it will satisfy its initial USD1.2 million expenditure commitment for the Aysid-Metekel project to maintain its initial 51% interest in that project.
Centamin has an option to fund up to a further USD5 million of work at the Aysid-Metekel Project and USD6 million of work at the Wayu Boda Project to increase its interest in each of the projects up to 70%.
"The fact that Centamin would like to continue fulfilling the initial expenditure commitment for the Wayu Boda Project of USD1.8 million is excellent news and, considering that the results and analysis from their recent exploration programme are yet to be received and assessed in full, we are encouraged by their decision," Alecto Chief Executive Mark Jones said in a statement.
Alecto Minerals shares were flat at 0.950 pence Monday morning. Centamin shares were down 0.6% at 61.75 pence.
By Steve McGrath; [email protected]; @stevemcgrath1
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