Cradle Arc has received notice from Randgold Resources that it is terminating the joint venture agreement with regards to the potential development of two exploration licences that make up the Kossanto West Gold Project in western Mali. As such, Cradle Arc is seeking a new partner as it believes the project is highly prospective.
Randgold Resources (Mali) Sarl has formally advised the African focused base and precious metals exploration and production company that it is terminating the agreement entered into in February 2016.
In line with the agreement, Randgold's 65% participating interest in the Kobokoto Est and Koussikoto licences will revert to Cradle Arc, which now holds 100% of the licences.
Cradle Arc's Board continues to believe that Kossanto West is highly prospective having witnessed considerable corporate activity in the immediate vicinity in recent months, including the acquisition of the Kossanto East Gold Project by Ashanti Gold Corp, its former joint venture partner, in August 2017.
Having received multiple expressions of interest from other exploration companies during the period of the Kossanto West JV, the company will actively seek a new partner for the continued exploration and advancement of the licences.
In accordance with the terms of the JV agreement, Randgold has provided a comprehensive database of the results from their field activities over the past two years. This data, along with the company's historical data, will be available for review by potential future partners.
Cradle Arc CEO Kevin van Wouw said: "Randgold have been an excellent JV partner to Cradle Arc over the past two years and their grassroots regional exploration campaigns have added significantly to our understanding of Kossanto West.
"As a result of the work performed to date, both by Randgold and Cradle Arc, we continue to believe in the prospectivity of Kossanto West and are confident that the extensive gold mineralisation that is present at multiple targets across this expansive 127 square kilometre exploration project can be further proven up.
"We will now discuss the best development path with existing and potential partners to continue the exploration work."