Aim-listed exploration company Altus Strategies on Thursday announced that it has signed a nonbinding term sheet for a joint venture (JV) with ASX-listed Indiana Resources.

Subject to entering into a definitive agreement with Altus, Indiana will have the option to earn up to an 85% interest in Legend Mali, Altus’ wholly owned subsidiary.

Legend holds a 100% interest in the Lakanfla and Tabakorole gold projects located in western and southern Mali, respectively.

Indiana may earn its interest by funding the exploration and development of the projects. The term sheet is subject to exclusivity provisions for 60 days following signing.

“We are delighted to have signed this term sheet with Indiana for a JV on our Lakanfla and Tabakorole gold projects. Upon entering into a definitive JV agreement, Indiana will have the option to acquire up to an 85% interest in the projects. In return it is anticipated that Altus will receive an upfront equity payment in Indiana’s shares, future milestone-based payments of cash and Indiana equity and a 2.5% net smelter return on the projects,” Altus CE Steven Poulton commented.

He added that Indiana was a “dynamic” exploration company with existing gold projects in Mali.

“We look forward to concluding the final agreements and to working with them thereafter. This transaction underscores the company's 'project generator' strategy of making and monetising mineral discoveries in Africa, while building and growing a valuable portfolio of royalty interests,” Poulton stated.

Lakanfla is located adjacent to the world renowned Sadiola gold mine, in western Mali, and contains a major area of historical artisanal gold workings and historical drilling results, including 5.10 g/t gold over 26 m, 9.78 g/t gold over 12 m and 5.61 g/t gold over 14.5 m.

The Tabakorole project, in southern Mali, targets a shear zone which has reportedly been mapped for 2.7 km long and up to 200 m wide. Historical drilling results, to date, at Tabakorole include 2.92 g/t gold over 60 m and 3.30 g/t gold over 44 m.

In addition to this transaction, discussions are continuing with Canyon Resources in respect of Altus’ existing bauxite JV in Cameroon. “We look forward to updating shareholders on the progress of these transactions in due course," concluded Poulton.