Details of a proposed joint- venture agreement between South African gold-producer JCI and Patrician Gold (ASE) on three of Patrician’s Tanzanian properties have become available.
JCI has the option to earn as much as a 70% interest in Patrician’s Ikungu property, which hosts the past producing Forest Reef mine. The senior can obtain the interest by completing at least two phases of exploration consisting of geochemical sampling, geological mapping, magnetic surveying and drilling. Total costs are expected to be about US$864,000.
JCI may also earn a 60% interest in both the Bunda and Kisamwe prospects by completing a US$100,000 exploration program on each of the two licenses. The programs are expected to include geological mapping, geochemical sampling and ground magnetic surveys, if warranted.
JCI will have six weeks to complete due diligence for the proposed programs and to construct a formal joint-venture agreement. Final terms of the agreement are subject to the approval of the companies’ boards of directors, regulatory authorities and the government of Tanzania.
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