Albidon said Monday it has signed a joint venture agreement with Iamgold under which the company may earn up to 80% interest in nickel exploration projects at Maitengwe in eastern Botswana.
The joint venture covers the Maitengwe Greenstone Belt which has not yet been subjected to intensive modern nickel exploration.
The joint venture further expands Albidon's extensive tenement interests in Botswana, following the Company's recent discovery of nickel at Sunnyside to the south, the company said.
Field operations will commence with soil geochemical sampling in June of this year.
Albidon said it has the right to earn interests in the JV tenements from Iamgold by funding exploration and development activities.
It plans to spend $75,000 within 12 months to maintain an exclusive option to earn a farm-in interest in the tenements and will make an additional expenditure of $325,000 within three years to earn a 50% farm-in interest
If Iamgold elects not to participate then Albidon may earn an additional 20% for a total 70% interest by completing further exploration expenditure of $400,000 within four years of commencement, it added.
Albidon said it may also earn an additional 10% for a total of 80% interest by completing a pre-feasibility study if Iamgold elects not to fund its 30% interest.
Thereafter, the partners to fund the JV activities in proportion to their respective interests or convert to a 1.5% NSR royalty if their interest falls below 10%, it said.
The exploration program planned for the coming months will include a review of Iamgold's existing database, regional geochemical sampling and geological evaluations aimed at defining zones of interest for more detailed sampling and geophysics, as warranted.
