THE BOURSE WHISPERER: Taruga Gold (ASX: TAR) has signed a binding Farm-in Agreement with big boy gold producer, Newcrest Mining (ASX: NCM).
Taruga is the 100 per cent owner of the Dabakala project, located in Cote d’Ivoire (Ivory Coast).
Under the terms of the agreement, Newcrest will be able to earn a 75 per cent interest in a joint venture company in Cote d’Ivoire by covering exploration expenditure of US$1.7 million over three years.
“Taruga is very pleased to have formalised this agreement. Newcrest are committed to advancing Dabakala with initial extensive auger drilling campaign designed to infill and define the gold anomalous zone prior to initial drilling,” Taruga Gold managing director Bernard Alyward said in the company’s announcement to the Australian Securities Exchange.
“The current Taruga strategy of procuring early stage assets, adding value and attracting Joint venture partners continues to prove successful.
“Taruga has now successfully completed two agreements in Cote d’Ivoire, with exploration activity increasing on our ground through geochemical sampling, auger drilling and potential reconnaissance drilling.
“The projects are very prospective and with the amount of exploration undertaken, the potential for discovery is increasing.”