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

Share tips of the week – 24 September
Share tips

Share tips of the week – 24 September

MoneyWeek’s comprehensive guide to the best of this week’s share tips from the rest of the UK's financial pages.
24 Sep 2021
Three strong Asian stocks trading at bargain prices
Share tips

Three strong Asian stocks trading at bargain prices

Professional investor Nitin Bajaj of the Fidelity Asian Values investment trust picks three stocks that dominate their industries, earn good returns o…
20 Sep 2021
Why it pays to face up to your investment mistakes
Investment strategy

Why it pays to face up to your investment mistakes

Buying stocks can be a complicated business. But selling stocks can be tricky, too – even if you sell for the right reasons. Max King explains how to …
17 Sep 2021
Share tips of the week – 17 September
Share tips

Share tips of the week – 17 September

MoneyWeek’s comprehensive guide to the best of this week’s share tips from the rest of the UK's financial pages.
17 Sep 2021

Most Popular

Two shipping funds to buy for steady income
Investment trusts

Two shipping funds to buy for steady income

Returns from owning ships are volatile, but these two investment trusts are trying to make the sector less risky.
7 Sep 2021
Should investors be worried about stagflation?
US Economy

Should investors be worried about stagflation?

The latest US employment data has raised the ugly spectre of “stagflation” – weak growth and high inflation. John Stepek looks at what’s going on and …
6 Sep 2021
A nightmare 1970s scenario for investors is edging closer
Investment strategy

A nightmare 1970s scenario for investors is edging closer

Inflation need not be a worry unless it is driven by labour market shortages. Unfortunately, writes macroeconomist Philip Pilkington, that’s exactly w…
17 Sep 2021