Many Peaks Minerals’ (ASX:MPK) has signed a binding earn-in and joint venture agreement with Ivorian partner Magic Mineral Structure, expanding its flagship Ferké Gold Project by 74% to 521km².
Under the terms of the agreement Many Peaks secures rights to a highly prospective 20km mineralised corridor immediately south of current drilling activity.
The company will pay shareholders US$50,000 ($76,141) upon execution of the agreement, with another US$120,000 payment following the grant of an exploration licence for the permit application.
Solely funding the exploration activities within the permit area at the Ferké Project and delivering a positive bankable Feasibility Study will allow the company to meet up to the 80% earn-in quota.
Many Peaks will be required to invest a minimum of US$2 million to earn-in to 65% interest in Magic Mineral Structure in three stages of expenditure costs.
Additionally, the company will be required to meet a minimum of US$400,000 expenditure cost within two years from the grant date, with another US$400,000 in expenditure to be completed within three years from grant date to earn-in 51% interest.
To earn up to its full 65% interest in Magic Mineral Structure, Many Peaks will need to provide an additional US$1.2 million in expenditure in stage three.
After completion of expenditure costs and the delivery of Feasibility Study, Many Peaks will hold 80% interest in the company and project, earning a net smelter return royalty for each 1% equity held converts to a 0.075% royalty.
Many Peaks will offer a milestone payment to shareholders after the first commercial production of gold produced from the permit area at US$1 per ounce of gold based on the timely ore reserve, which will be capped at a total of US$4 million and issued out within 20 business days from pour and one the first anniversary.
Managing Director Travis Schwertfeger says the project is emerging with a significant mineralised trend within one of West Africa’s “most prospective and stable” gold mining jurisdictions.
“The addition of this 221km2 strategic landholding aligns with our growth strategy and consolidates land that includes an additional 20km of open mineralised corridor with excellent discovery upside,” Schwertfeger says.
Many Peaks Minerals is a gold and copper explorer looking to advance its portfolio of projects in West Africa.
Write to Maddison Elliott at Mining.com.au
Images: Many Peaks Minerals
