Pacific Vangold Mines (PVM-V) has struck a joint-Venture deal with South African mining firm Anglovaal whereby that company will help conduct exploration and development work on mining concessions in Uganda.
Anglovaal proposes to spend US$7 million to earn a 70% interest in the concessions, some of which are on the northerly extension of Tanzania’s nickel-Cobalt belt, while others are on the northeasterly extension of the Kilembe copper-Cobalt belt in western Uganda.
The work program will focus on the search for copper, nickel, cobalt, zinc, lead, platinum group metals, gold, silver, chromium and precious stones, including diamonds.
The proposal calls for a subsidiary of Anglovaal to set up a Uganda-based company, which would purchase the licences from Pacific Vangold and its partners in exchange for 30% of the issued shares of the new company.
Anglovaal would own 70% of the new company, whereas Vangold would hold 22.3%.
Vangold’s two partners would hold minority interests.
The first-phase program, to be funded and conducted by Anglovaal, will involve data compilation and interpretation, airborne and ground geophysics, geological mapping and early-stage diamond drilling.
Once the initial US$1-Million program is complete, the partners will formulate an ongoing program for the licence areas, the cost of which will be borne by the shareholders of the new company in proportion to their holdings.
Anglovaal will be required to put up US$4.2 million (its 70% share of US$6 million), as well as US$1.8 million as a non-recourse loan to Vangold and its partners.
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