Alecto Minerals PLC (LON:ALO) chief executive Mark Jones says the company has agreed to sell a 65% stake of its gold project in Malia to Ashanti Gold Corp (CVE:AGZ) to help advance its operations in Zambia.
“[The farm-out] is a continuation of our strategy to reduce our exposure we have to exploration in our bid to become a producer from our operational opportunity in Zambia,” said Jones.
He also told Proactive that he wants to reward the company’s loyal shareholders and the only way to do that is to start producing gold.
“We’ve got to get into production, we’ve got to be a cash producer for us to get any realistic way of rewarding our shareholders.”
If everything runs smoothly, Jones hopes to have the mines in Zambia commissioned by the middle of next year.
He also told Proactive that the improving gold price was helping to get the finance in place for the mines, something he hopes to have concluded by the end of September.
Link to interview with Mark Jones, CEO Alecto Minerals Plc