20th Sep 2013 14:22
LONDON (Alliance News) - Alecto Minerals PLC friday said it has entered into a joint venture with Centamin PLC for operations in Ethiopia.
The AIM listed, commodity exploration and development company, with operations in Ethiopia and Mauritania, said Centamin has bought into two exploration licenses which were 100% owned by Alecto.
Centamin is required to fund USD1.8 million to maintain a 51% interest in Alecto's Wayu Boda site with an option to fund up to a further USD6 million to increase its stake to 70%.
Centamin is also required to fund USD1.2 million to maintain a 51% interest in Alecto's Aysid-Meketel site with an option to fund up to a further USD5 million to increase its stake to 70%.
Alecto said that both companies would discuss future targets and the development of operations on the two sites through a joint venture committee.
"The funding they will provide, together with their expertise in Africa, and operating and technical know how, will prove vital in making these projects successful and will enable us to return value to our shareholders with minimal expenditure by the Company," Alecto Chairman Michael Johnson said in a statement regarding Centamin.
Alecto shares jumped up 29.57% to 1.49 pence and Centamin shares were up 2.84% to 45.31 pence Friday.
By Tom McIvor; [email protected]; @TomMcIvor1
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