Legend Gold Corp. (TSX-V:LGN) announces that it has entered into an earn-in agreement with Randgold Resources (Mali) Limited, whereby Randgold will earn-in on seven of Legend Gold’s permits contained within the Keniebandi and Kofi Formations south of the Sadiola Mine in Western Mali. The specific permits are known as Kanda, Djelimangara West, Djelimangara East, Sebessounkoto, Sebessounkoto South, Keniebandi and Kata.
Under the terms of the agreement, the Joint Venture will conduct prospecting activities with respect to the permits in accordance with the requirements of the Mining Code of Mali and/or the Conventions signed with the Government of Mali for the specific permit areas.
The Joint Venture will have a Management Committee composed of three members from Randgold and two members from Legend Gold and will be responsible for oversight of the prospecting activities.
The cost of all prospecting activities including the preparation of a pre-feasibility study will be borne by Randgold. Once the pre-feasibility study is approved by the Management Committee and definitive feasibility study commenced, Randgold and Legend Gold will begin to share expenses on a 51:49 basis, respectively. If Legend Gold elects not to participate in the financing of the definitive feasibility study, its interest will be diluted from 49% to 35% upon completion of the bankable feasibility study.
If a production decision is taken, Randgold and Legend Gold will participate in the financing on a pro rata basis. If Legend Gold decides not to participate in the financing of the project, its equity position will be converted to a 1.5% NSR royalty.
Douglas Perkins, President and CEO of Legend Gold stated, “This agreement with the most successful of African Gold Miners shows how our business model is working when the best players want to participate with us. This agreement is structured so that we could add other prospects to the Joint Venture in order to increase the chances of successful mine development. The Legend Gold team looks forward to working with Randgold on this project.”
About Legend Gold
Legend Gold is a mineral exploration and development company focused on exploring for gold in the Republic of Mali, West Africa. Legend Gold’s fifteen main projects include the Lakanfla, Diba, Badiazila, Mougnina, and Tiekoumala among others. There have been significant discoveries made at Diba, Lakanfla and Tiekoumala.
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