Aim-listed diversified gold exploration and development company Panthera Resources has further restructured the joint venture (JV) agreements with Golden Spear Mali (GSM) over the Kalaka and Bassala gold projects, in Mali.
Under the new JV agreements, Panthera's interest in the Kalaka and the Bassala projects has increased from 80% to 85%, with the remaining 15% interest continuing to be owned by its local partner, GSM.
Panthera says GSM will be entitled to a 'carry' of costs by Panthera until the start of construction for the commercial development of mining operations. Any carry amount outstanding is to be repaid to the company from profits distributed from the future mining operations.
The company says GSM is required to contribute its share of the development costs or dilute its interest in the JV.
“The new JV agreements with GSM follow the recent completion of the restructuring of the ownership of Kalaka.
“With these changes now completed, the company is well positioned in its discussions with third parties to potentially fund and or reorganise its ongoing ownership interest in its West African gold assets. Should these discussions prove successful, it may provide a path for the company to realise significant value from its West African gold portfolio,” says Panthera MD Mark Bolton.
Panthera notes that the terms and conditions of the new JV agreements are materially unchanged, with some exceptions.
This includes the parties acknowledging that the company has met its 80% earn-in expenditure commitments on each of the JV projects under the superseded JV agreements.
Moreover, Panthera says it will make a one-off payment of $10 000 and issue 135 200 new ordinary shares of 1p each in the capital of the company to GSM or its nominee.
Panthera says GSM is not entitled to a carry for the construction-development expenditure and the failure of GSM to contribute 15% of this expenditure shall result in the dilution of GSM’s ownership percentage in the applicable JV project according to standard industry formulae.