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Altus Strategies said it had signed a non-binding term sheet with Desert Gold Ventures to sell the company's Sebessounkoto Sud and Djelimangara gold projects.
Under the agreement, Altus would receive an initial payment of 3m Desert Gold shares with a current value of approximately C$675,000, USD $50,000 in cash and 2.5% net smelter return royalty on the gold projects located in Mali.
Altus would also receive milestone payments, including US$100,000 in cash and 2m Desert Gold shares on the first 500,000 oz produced and US$100,000 in cash and 3m Desert Gold shares on the second 500,000 oz produced.
'Of our six projects in Mali, only our most advanced asset, the Diba gold project, is not currently subject to a JV or Term Sheet for a transaction,' said Steven Poulton, Chief Executive of Altus.
'Diba has a historic resource, not in accordance with NI 43-101, and is contiguous with the Sadiola mine permit. The transaction we are announcing today with Desert Gold, further underscores our clear strategy of making and monetising discoveries in Africa, while also growing a valuable portfolio of project equity and royalty interests'.
At 9:04am: (LON:ALS) Altus Strategies Plc share price was 0p at 4.75p