SolGold secures full ownership of Kuma licence in Soloman Islands

SolGold, an AIM-listed mining group, has secured 100 per cent ownership of the prospective Kuma prospecting licence, which is currently undergoing the renewal process for a further two year extension.

SolGold, an AIM-listed mining group, has secured 100 per cent ownership of the prospective Kuma prospecting licence, which is currently undergoing the renewal process for a further two year extension.

The company, along with NVL Solomon Islands, a subsidiary of Newmont Mining Corp., has also entered into an agreement with Gold Ridge Mining, a wholly owned subsidiary of St Barbara, which operates the only gold mine in the Solomon Islands at Gold Ridge.

These two developments follow the a decision by the company and its Guadalcanal Joint Venture partners to seek expressions of interest for the divestment of the Guadalcanal Joint Venture project in the Solomon Islands.

Under the agreement the parties will co-operate in securing suitable tenure over an area covered by the four remaining prospecting licences that make up the Guadalcanal Joint Venture for the benefit of Gold Ridge Mining, and for Gold Ridge Mining to acquire relevant exploration data generated by the JV.

Completion of the agreement and the amount of the cash consideration is subject to various conditions; the maximum amount payable to SolGold if all conditions are satisfied is $494,000, which reflects SolGold's JV equity position of 26%.

Malcolm Norris, Chief Executive Officer of SolGold commented: "We are pleased with this outcome. It provides exposure to a cash settlement for a portion of the GJV, and delivers us a highly prospective, 100% held project at no cost, supported by significant historical data, and manageable within our current portfolio. This is consistent with our stated strategy as we continue to build a robust gold-copper portfolio."

NR

Recommended

Broker safety – your questions answered
Investment strategy

Broker safety – your questions answered

Cris Sholto Heaton answers more of your questions about the safety of stockbroker accounts
25 Mar 2020
How demographics affects stock valuations
Investment strategy

How demographics affects stock valuations

New research suggests that stock and bond valuations are driven by the age of the population – at least in the US.
24 Feb 2020
Do you own shares in Sirius Minerals? Here’s what you need to do now
Stocks and shares

Do you own shares in Sirius Minerals? Here’s what you need to do now

Mining giant Anglo American has proposed a cash takeover of Yorkshire-based minnow Sirius Minerals. Unhappy shareholders must decide whether to accept…
20 Feb 2020
Why investors should be “cautiously bullish” for 2020
Stockmarkets

Why investors should be “cautiously bullish” for 2020

Analysts have been out in force making rosy predictions for stockmarkets in 2020, but while there is certainly a case for optimism, investors should r…
17 Jan 2020

Most Popular

Of course bitcoin is a bubble – a bubble you can’t ignore
Bitcoin

Of course bitcoin is a bubble – a bubble you can’t ignore

Bitcoin’s wild ride is being called a bubble by many. And it is, says Dominic Frisby. But that’s not necessarily a bad thing. And it’s a bubble in whi…
13 Jan 2021
A simple way to profit from the next big trend change in the markets
Investment strategy

A simple way to profit from the next big trend change in the markets

Change is coming to the markets as the tech-stock bull market of the 2010s is replaced by a new cycle of rising commodity prices. John Stepek explains…
14 Jan 2021
Forget austerity – governments and central banks have no intention of cutting back
Global Economy

Forget austerity – governments and central banks have no intention of cutting back

Once the pandemic is over will we return to an era of austerity to pay for all the stimulus? Not likely, says John Stepek. The money will continue to …
15 Jan 2021