Altus Strategies completes royalty and property sale deal with Desert Gold
Africa-focussed project and royalty generator Altus Strategies announced the successful completion of the royalty and property sale transaction with TSX-V listed Desert Gold Ventures on Thursday, on the firm’s contiguous Sebessounkoto Sud and Djelimangara gold projects in western Mali.
The AIM-traded firm said the transaction had closed in accordance with the term sheet between Altus and Desert Gold, as it announced on 28 August.
Altus said it would receive an initial consideration of a 2.5% net smelter return royalty on the projects, as well as three million shares in Desert Gold with a current value of approximately CAD 0.42m and $50,000 in cash.
Subject to progress on the projects, Altus added it would receive a number of milestone payments, including $100,000 in cash and two million Desert Gold shares on the first 500,000 ounces defined, and $100,000 in cash and three million Desert Gold shares on the second 500,000 ounces defined.
It said historical drilling intersections included 11.05 grams of gold per tonne over 3.7 metres, and 3.71 grams of gold per tonne over eight metres.
Desert Gold planned around 15,000 metres of drilling in 2020, to include the projects, which are strategically located in the Kéniéba window of western Mali, 20 kilometres southeast of Sadiola.
“We are delighted to have closed this gold royalty and property transaction with Desert Gold on the highly prospective Sebessounkoto Sud and Djelimangara projects in western Mali,” said chief executive officer Steven Poulton.
“Through our shareholding in Desert Gold Altus gains exposure to a substantial 407 square kilometre land package, which incorporates a 38 kilometre long section of the prolific Senegal Mali Shear Zone.
“Desert Gold has an aggressive exploration programme planned for this area in the coming year, including approximately 15,000 metres of drilling.”
Poulton said that in addition to the transaction with Desert Gold, Altus recently announced an extension to the exclusivity period for the completion of the proposed joint venture with Glomin Services on its Lakanfla and Tabakorole gold projects in Western and Southern Mali, respectively.
“Only our most advanced gold asset in Mali, namely the Diba project, is not currently subject to a transaction.
“Diba has a historic oxide resource, not in accordance with NI 43-101, and is contiguous with the Sadiola mine permit.
“The completion of this transaction with Desert Gold, further underscores our clear strategy of making and monetising discoveries in Africa to grow a valuable portfolio of project, equity and royalty interests.”
As at 0805 GMT, shares in Altus Strategies were down 7.79% at 3.6p.