LONDON (ShareCast) - SolGold, an AIM-listed mining group, has secured 100 per cent ownership of the prospective Kuma prospecting licence, which is currently undergoing the renewal process for a further two year extension.
The company, along with NVL Solomon Islands, a subsidiary of Newmont Mining Corp (NYSE: NEM - news) ., has also entered into an agreement with Gold Ridge Mining, a wholly owned subsidiary of St Barbara (Other OTC: STBMY - news) , which operates the only gold mine in the Solomon Islands at Gold Ridge.
These two developments follow the a decision by the company and its Guadalcanal Joint Venture partners to seek expressions of interest for the divestment of the Guadalcanal Joint Venture project in the Solomon Islands.
Under the agreement the parties will co-operate in securing suitable tenure over an area covered by the four remaining prospecting licences that make up the Guadalcanal Joint Venture for the benefit of Gold Ridge Mining, and for Gold Ridge Mining to acquire relevant exploration data generated by the JV.
Completion of the agreement and the amount of the cash consideration is subject to various conditions; the maximum amount payable to SolGold if all conditions are satisfied is $494,000, which reflects SolGold's JV equity position of 26%.
Malcolm Norris, Chief Executive Officer of SolGold commented: "We are pleased with this outcome. It provides exposure to a cash settlement for a portion of the GJV, and delivers us a highly prospective, 100% held project at no cost, supported by significant historical data, and manageable within our current portfolio. This is consistent with our stated strategy as we continue to build a robust gold-copper portfolio."