Predictive (72.1% interest) has signed an agreement with Stratos Resources (ASX: SAT) (27.9% interest), enabling Predictive to move to 100% ownership of the four Burkina Faso permits that constitute the ElDore Joint Venture.
Consideration for the deal includes Predictive issuing Stratos 13 million PDI shares. At the same time, Stratos will make a cash payment to Predictive of $140,000 in partial repayment of outstanding cash calls from the Joint Venture.
Also, as part of this transaction, Stratos and its Directors are contributing $160,000 to the shortfall in Predictive's recent entitlement issue.
Combined the tenements cover over 620 square kilometres, but most importantly this includes the Laterite Hill Gold Field, a 20 kilometres long zone of gold mineralisation - and where Predictive recently made a new gold discovery.
Predictive has obtained excellent drill results over eight separate zones of gold mineralisation with a cumulative strike length of at least 8 kilometres to date.
The companu is advancing towards a maiden JORC Resource in late 2012.
Predictive sees 'great value' in the four permits
This deal for Predictive is significant, simplifying the ownership structure over tenements which the company sees great value in.
This value is not just in the Laterite Hill Gold Field but in the potential upside in the rest of the permit areas, which are largely untested.
The recent discovery drill hole at the Bongou Prospect (54 metres at 2.1g/t gold from 36 metres) in a hitherto undrilled part of the Madyabari Permit highlights this potential.
Stratos to be a supportive shareholder
Another benefit of the agreement for Predictive is that Stratos already has a good understanding of the company's Burkina Faso projects - and has also demonstrated its support of Predictive's direction and management by contributing to the entitlement issue shortfall.
Predictive said that it looks forward to an ongoing strong relationship with Stratos as the company advances the eastern Burkina Faso projects towards the goal of more than 2 million ounces in resources with an average grade above 2g/t gold.
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