The company entered into an Earn In-Agreement with Trek Metals Limited (formerly Zambezi Resources) on 2 November 2016 and was announced on the ASX platform on this date..
The terms are summarised below;
- Trek has the ability to earn up to a 70% interest in the Kroussou Project under the Agreement, as follows;
- Trek to fund an initial drill program at the Project up to US$250,000;
- Should it elect to exercise its Option prior to 31 July 2017, it will pay BAT US$240,000 in cash and/or shares and secure the right to earn 30% of the Project via the expenditure of US$1m within 12 months of exercise date;
- Trek may earn a further 40% of the Project via the expenditure of a further US$3m in the subsequent 24 months.
- Upon Zambezi earning a 70% interest in the Project, BAT will be free carried to completion of a PFS and will have the option to contribute to a DFS, or dilute its interest.
Full details of the Earn In are detailed in the ASX release on 2 November 2016.