B2Gold takes up interest in Ondundu Gold project
Forsys Metals recently announced an earn-in-agreement it had executed with B2Gold Namibia which enables the gold producer to take up as much as 100% interest in the Ondundu Gold Project.
In a statement released recently, it was stated that the principal commercial terms of the Earn-In are as follows: in the first 12 months B2Gold will, as project managers, have the right to acquire 25% of
Ondundu for a committed spend of US$900,000; if B2Gold exercise their first right, in the second 12 months they will spend a further US$1,100,000 to acquire an additional 24% interest in Ondundu (49% in total); if B2Gold exercise their second right, they may spend a further US$1,300,000 to acquire an
additional 26% interest in Ondundu (75% in total) in the third 12 months and B2Gold and Forsys may separately exercise a call or put option to transfer the balance of Ondundu for US$8,500,000 after 24 months or 36 months respectively.
Forsys Chief Executive Marcel Hilmer said the Earn-In with B2Gold will ensure that there is a strong
financial commitment to develop Ondundu. “We look forward to working with B2Gold to successfully
progress the Ondundu project,” he said.
Discovered in 1917, it is located in the Northern Zone of the Neoproterozoic Damara Orogen in north-central Namibia. Ondundu is a sediment-hosted, structurally controlled, mesothermal gold deposit belonging to a family of deposits that includes some of the world’s most significant gold resources.