Kerman & Co advise on Joint Venture between Alecto Minerals Plc and Centamin Plc

20 September 2013

Kerman & Co advised long-standing client Alecto Minerals Plc (AIM:ALO) (“ALO”) on its joint venture agreement with Centamin Plc (LSE:CEY) (“CEY”) in relation to Alecto’s gold projects in Ethiopia.

In aggregate ALO has secured up to US$14 million by way of farm-in investment in their Ethiopian assets. This will allow the development of their Aysid-Metekel and Wayu Boda gold exploration licences (“Joint Venture Projects”).

ALO is a multi-commodity exploration and development company with projects in Ethiopia, Mauritania and Mali* (*subject to regulatory approval).

Located in Federal Democratic Republic of Ethiopia, the Joint Venture Projects cover mineral rich land in close proximity to active gold mines.

The investment will be provided in two stages; an initial expenditure, on CEY’s part, of US$3 million and then a second tranche of investment, on CEY’s part, of US$11 million.  Subject to CEY satisfying the full expenditure commitment CEY shall be interested in 70 per cent of the Joint Venture Projects, and ALO 30 per cent.

Non-Executive Director, Toby Howell, said “the joint venture agreement will allow Alecto to develop its existing assets in Ethiopia whilst retaining an important and valuable stake in them.”

Michael Corcoran (Partner) and Philip Olm (Associate) in the Corporate and Capital Markets Team advised Alecto Minerals.