That work, to be carried out over the next 12 months, will include 1500-2500m of diamond drilling, a 20sq.km ground magnetics survey and further geological mapping over the granted permits.
Predictive had earned 37% of the Bobosso project from Ivoirian company XMI by spending about $A180,000 on mapping, data compilation and metallurgical testwork on the ground.
But the company decided to bring in a partner to carry the majority of future expenditure as it decided to forgo an option to lift its stake to 65% after spending $2.55 million.
Full ownership in XMI will soon be transferred to private company West African Mine Investments (WAMIL), 63%-owned by Ivoirian company West Africa Venture Investment and 37% held by Predictive.
Progress will hold the 30% stake in WAMIL, with Predictive holding 30% and WAVI 40% at the end of the transaction.
The Canadian company can then earn another 25% in the project from WAVI by spending another $US1.5 million in 12 months, giving it a 55% stake in the project, with Predictive able to buy further WAVI shares to keep its stake at 30%.
Should that happen, WAVI will hold 15% and the Ivoirian company will be free-carried to a decision to mine.
Predictive managing director Paul Roberts said the program would give it enough information to support future resource estimation and to make a decision about further developing the project.
“The agreement marks another step in the implementation of our strategy – to maximise drilling on our large and highly prospective gold exploration holdings in West Africa while maintaining substantial equities in the best projects and minimising dilutive capital raisings,” he said.
“We are particularly pleased to be partnering with Progress, which has significant mine development skills and financing networks to enable an efficient progression from ore discovery to mine development.”
Predictive is currently focusing on exploration at its Toro gold joint venture, also in the Ivory Coast, with project partner Toro Gold starting a 1500m diamond drilling program at the Nyangboue prospect on the Boundiali project in February.
Shares in Predictive were unchanged at A1.1c in morning trade, valuing the company at $A17.9 million. The company had $2.7 million in cash at the end of the December quarter.
