- Arrow Minerals (AMD) has signed a binding term sheet with Canada-based Trevali Mining to explore eight tenements in Burkina Faso
- Under the deal, Arrow will gain access to explore Trevali's five permits in return for a 51 per cent interest in defined gold resources
- Trevali will be able to explore for base metals at Arrow's three permits in return for a 51 per cent interest in defined base metals
- Additionally, either company will be granted a two per cent net smelter royalty and be reimbursed for two times the amount of exploration costs
- Company shares ended the day trading flat at 0.9 cents at market close
Arrow Minerals (AMD) has signed a binding term sheet with Canada-based Trevali Mining for an exploration joint venture.
Under the deal, both parties will have reciprocal rights to eight exploration licences in Burkina Faso.
Of the eight exploration licences, five are wholly owned by Trevali and Arrow Minerals has a complete ownership of the remaining three.
Essentially, Arrow can explore for gold at Trevali's tenements, and Trevali can explore for base metals on Arrow's permits.
Arrow will gain a 51 per cent interest in any gold resource defined on Trevali's permits. Trevali will also gain a 51 per cent interest in any base metals mineral resource defined on Arrows permits.
If either company discovers gold or base metals, they'll be granted a two per cent net smelter royalty along with a reimbursement of two times the amount of exploration costs.
Our new cooperative arrangement is truly mutually beneficial, exposing both parties to highly prospective exploration ground to advance their respective commodity focuses. At the same time, both companies retain exposure to exploration success in non-core minerals," Arrow CEO Howard Golden said.
Within the 1024-square kilometre permit package, there is existing gold mineralisation at the Dassa, Divole East, Poa and Guido advanced gold prospects.
"This arrangement is transformative for Arrow Minerals and gives us access to over 80 kilometres of strike along the highly prospective gold-bearing Boromo Greenstone Belt," Howard added.
Arrow will kickstart a regional stream sediment sampling program next month.
Company shares ended the day trading flat at 0.9 cents at market close.