Canada’s Chilean Metals (TSXV: CMX) signed a C$4.5 million funding term sheet for the creation of a joint venture vehicle with Australia’s Aura Energy (ASX: AEE, AIM: AURA) for its gold, base and battery metal tenements in Mauritania.
In a press release, the companies explained that the transaction will see Aura progressively sell its licences in the West African country into a joint venture vehicle (PubCo) with Chilean contributing four scheduled payments before October 2021.
The transaction will see Aura progressively sell its licences in the West African country into a joint venture vehicle
At that time, Aura will own 50% of the vehicle and Chilean will own 50%. Aura will also receive 1 million shares in Chilean Metals as part of the transaction, subject to TSX Venture Exchange approval.
According to the miners, Aura’s Tasiast South tenements over 435 square kilometres are in a highly prospective area lying on two lightly explored mineralized greenstone belts in Mauritania. The areas lie along strike from Kinross’ giant +20 Moz Tasiast gold mine, where Kinross has recently announced that it will expand gold production to 530,000 ounces per year.
Aura maintains that these tenements, also with strong base and battery metal results, represent some of the best under-explored greenstone belt targets in the world.
“This substantial funding package from a group of seasoned resource investors/developers will help reveal their [the tenements] true potential,” Aura Energy executive chairman, Peter Reeve, said in the media brief. “With the Tasiast gold mine (+400,000 ozs pa) on the same belt just north of our project, the potential for discoveries is, in the eyes of our technical people, very conceivable.”