15 Sep 2014 07:00
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Alecto Minerals plc / EPIC: ALO / Market: AIM / Sector: Exploration & Development
15 September 2014
Alecto Minerals plc ('Alecto' or the 'Company')
Update re Ethiopian Wayu Boda JV Gold Project
Alecto Minerals plc (AIM: ALO), the AIM quoted mineral exploration company focussed on West and East Africa, is pleased to announce that it has been formally notified by its Joint Venture partner Centamin plc ('Centamin') that, following the completion of the recent exploration programme, it will continue to satisfy the initial expenditure commitment at the Company's 945 sq. km. Wayu Boda Gold Project ('Wayu Boda Project') in Ethiopia. The Wayu Boda Project is held subject to a joint venture agreement with Centamin (the 'JV Agreement'), pursuant to which Centamin is required to fund exploration costs of US$1.8 million over a two year period in order to maintain an initial 51% interest in the Wayu Boda Project.
The JV Agreement also extends to the Company's 1,954 sq. km. Aysid Metekel Gold Project ('Aysid-Metekel Project') which is located in the Aysid-Metekel region of north-west Ethiopia. As announced on 3 June 2014,pursuant to the terms of the JV Agreement, Centamin has already indicated that it will satisfy its initial expenditure commitment for the Aysid-Metekel Project of US$1.2 million over two years to maintain its initial 51% interest in the Aysid-Metekel Project.
Pursuant to the JV Agreement, Centamin has an option to fund up to a further US$5 million of work at the Aysid-Metekel Project and US$6 million of work at the Wayu Boda Project to increase its interest in each of the projects up to 70%.
Mark Jones, CEO of Alecto, commented:
"The fact that Centamin would like to continue fulfilling the initial expenditure commitment for the Wayu Boda Project of US$1.8 million is excellent news and, considering that the results and analysis from their recent exploration programme are yet to be received and assessed in full, we are encouraged by their decision. Our positive experience with Centamin, with them already having committed to the initial expenditure commitment for the Aysid-Metekel Project, endorses our company-wide joint venture strategy and provides us with exposure to exploration upside without capital expenditure, and we look forward to providing updates regarding both projects at the appropriate time for both ourselves and Centamin"
**ENDS**
For further information, please visit www.alectominerals.com or contact:
Alecto Minerals plc Mark Jones | Tel: 020 3137 8862 |
Strand Hanson Limited Richard Tulloch Matthew Chandler James Dance | Tel: 020 7409 3494 |
Hume Capital Securities plc Jon Belliss Abigail Wayne | Tel: 020 3693 1470 |
St Brides Media & Finance Ltd Elisabeth Cowell Felicity Edwards | Tel: 020 7236 1177 |
Notes to editors:
Alecto Minerals plc is an African focussed, gold and base metal exploration company, quoted on AIM, with exploration projects in Mali, Ethiopia and Mauritania.
The on-going development of the Kossanto Gold Project in Mali is the Company's predominant operational focus and with significant value upside potential evident across the tenure, the Board plans to build on its current independent inferred resource estimate of 6.72 Mt grading at 1.14 g/t Au for an aggregate of 247,000 oz Au with a cut-off grade of 0.5 g/t Au for the Gourbassi target reported in accordance with the guidelines of the JORC Code (2012).
Alecto also has a joint venture with Centamin plc over two prospective gold exploration licences in Ethiopia which sees Alecto retain exposure to the assets with no capital expenditure, as well as the wholly owned Wad Amour IOCG Project in Mauritania which is at exploration status. Combined, these projects provide the Company with a strong, diversified portfolio with exciting exploration upside potential.