Shares in Alecto Minerals (LON:ALO) soared Monday after it announced it had struck a joint venture deal with Randgold Resources (LON:RRS) over the former's Kossanto West Gold Project in Western Mali.
Once deal is completed, Randgold would fund all costs, including the completion of a pre-feasibility study.
The company said the joint-venture was part of its strategy to retain exposure to its African gold portfolio, while minimizing spend on exploration and development.
On completion of the joint venture, Randgold would fund all costs up to and including the completion of a pre-feasibility study on the project, and would hold a 65% interest in the permits. Alecto would retain 35%.
The 137 sq. km Kossanto West Gold Project comprises the Kobokoto East and Koussikoto exploration permits.
An initial work programme will see further mapping with potential follow up inspection drilling anticipated to be undertaken by Randgold in the first 12 months.