Colorado-based Canyon Resources (NASDAQ) has entered a joint venture with JCI Limited, a South African company, to finance exploration in Ethiopia.
JCI can earn 51% in the project by contributing US$4.5 million, and can increase its ownership to 65% on any particular licence.
Canyon is currently exploring the 60-sq.-km Megado Serdo property, which is near the 2-million-oz. Lega Dembi gold mine in the Adola gold belt of southern Ethiopia. The company is in the final stages of negotiations with the government for a 108-sq.-km licence in the Meleka Abeba area, also in the Adola gold belt.
JCI produces 1.8 million oz. gold per year from minable reserves of more than 80 million oz.
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