Victory West Moly Limited (ASX:VWM) Work To Start At Malala Molybdenum Project
On receipt of certain executed administrative letters, CGGC will immediately make the second and final A$500,000 payment under the terms of its Commitment Fee. The two A$500,000 payments comprise the A$1million Commitment Fee agreed as part of the joint venture.
Under the terms of the agreement, CGGC will acquire a 65 per cent interest in the project in return for sole funding 100 per cent of all expenditure to up to the point where Malala is in large-scale production.
Victory West will retain a free-carried interest of 27.5 per cent in the project through its related parties.
The Malala Molybdenum Project comprises five strategic exploration concessions that are highly prospective for Molybdenum. These are located in the Toli-Toli Regency at the northern tip of the island of Sulawesi in Indonesia and cover a total area of 23,747Ha.
At the end of January, key management from Victory West and CGGC (Indonesia) met with the Governor of Central Sulawesi H. Bandjela Paliudju, and H. Moh. Saleh Bantilan, Bupati Toli Toli Regency and Central Sulawesi. The Governor and Bupati reiterated their commitment to support the project and provide their full support to expedite any required letters and approvals.
Initiating Work Program
The parties have agreed to as soon as practically possible to establish a management and operating committee consisting of three CGGC representatives and two VWM group representatives.
An annual budget and work program is to be agreed and implemented by the Operating Committee. Subject to receipt of the any required permits, an immediate and extensive exploration and development program will be undertaken with an initial primary focus on Inti Cemerlang.
It is expected that the initial work program will see the construction of more than 20kms of roads providing greater accessibility to the project, significant drilling and exploration work including the construction of a 700m+ exploration/prospecting tunnel (adit) to further explore Anomaly B.
CEO Robert Hyndes said the initial focus would be on exploration and feasibility works that would determine the quickest route to early production opportunities from high-grade mineralisation identified during exploration.
Additionally, CGGC have indicated their interest in securing an off-take and supply agreement for DSO Nickel from the USSU Nickel Project which is currently in the process of being acquired by VWM. The parties have agreed to enter into good faith negotiations as the project continues to advance towards production.
Victory West Metals Limited