Cote d'Ivoire Projects
PDI holds four highly prospective exploration permits in Cote D’Ivoire: Kokumbo, Ferkessedougou, Boundiali and Kounahiri, covering a total area of 1,533km2 (Figure 1). These permits were selected by a country-wide analysis of geophysical and geological data using the same Predictore® methods which were used to select the Company’s ground in Burkina Faso.
Joint Venture with Toro Gold Limited
PDI signed a Heads of Agreement (HOA) with Toro Gold Limited (Toro) on the Company's entire Cote D'Ivoire ground holding on 22nd September 2014. Subject to successful completion of legal due diligence by Toro, terms of the agreement include:
- Toro will spend US$1 million to earn 51% in PDI's Cote D'Ivoire subsidiary, Predictive Discovery Cote D'Ivoire SARL (Predictive CI), which holds all of PDI's Cote D'Ivoire ground (Figure 6);
- Toro will pay US$200,000 in cash to PDI on completion of legal due diligence and execution of a full Joint Venture document within 90 days of signature of the HOA;
- Assuming that Toro earns the initial 51%, Toro will make further cash payments of up to US$100,000 in the following 24 months;
- After Toro has earned 51%, PDI may choose to contribute or dilute in stages. If PDI chooses to dilute, Toro can earn 65% by spending US$2.5 million and up to 90% by sole funding through to a full feasibility study;
- Toro's minimum commitment is US$400,000 expenditure within 12 months; and
- An exploration program covering the first US$1 million of expenditure will be agreed between PDI and Toro, including planned drilling in 2015.
Toro is a private gold exploration and development company focused in Africa. It is led by a team with a successful track record of discovery, development, operation and corporate transactions. Toro is well funded, and has strong institutional shareholder support, including the African Lion 3 Fund, Resource Capital Funds, Macquarie Bank and Sprott. Toro's flagship project is the Mako deposit in Senegal with a published JORC 2012-compliant Resource Estimate of 1.4 million ounces at 1.75g/t Au. Mako is currently the subject of a Definitive Feasibility Study. This joint venture is Toro's first investment into Cote D'Ivoire.
Figure 1: Location of Cote D'Ivoire permits on geology background