Alecto talk Centamin, Gold and Ethiopia

PUBLISHED: Sep 15 2014 @ 16:54 | Comments (1) |

Update re: Ethiopian Wayu Boda JV Gold Project

Alecto Minerals plc (LSE:ALO), the AIM quoted mineral exploration company focussed on West and East Africa, has been formally notified by its Joint Venture partner Centamin plc 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 in Ethiopia. The Wayu Boda Project is held subject to a joint venture agreement with Centamin, 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 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”

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