Inco and Cornucopia team up

As part of a strategy to boost international exploration, Inco (TSE) has formed a “strategic alliance” with juniors Cornucopia Resources (TSE) and Carlin Resources (VSE) to develop base metal projects in Africa.

The agreement represents the nickel miner’s first foray into Africa, where Cornucopia and its subsidiary Carlin have been active for some time. Inco, Cornucopia’s largest single shareholder, also has investments in Indonesia, Turkey, Chile and Brazil.

“We think quite highly of the management of Cornucopia and Carlin,” says Terry MacGibbon, director of international exploration for Inco. He adds that Inco is significantly increasing its international exploration budget this year but will not cite any figures.

The agreement gives Inco the right of first refusal to acquire a 60% interest in, and become operator of, any base metal property the juniors acquire or identify in Africa within the next year. Upon exercising this right, Inco will refund all expenditures incurred up to completion of a feasibility study and help Cornucopia and Carlin raise their share of financing for the project. The agreement also allows the option to be extended for another two years.

The juniors’ activities in Africa have so far focused on gold and diamond properties, particularly the Volta diamond concession in Ghana where Carlin is attempting to identify the bedrock source for alluvial diamonds.