TORTOLA, BRITISH VIRGIN ISLANDS -- (Marketwired) -- 07/03/13 -- Taurus Gold Limited, a private exploration company operating in West Africa, is pleased to announce that it has entered into a joint venture (JV) agreement with Randgold Resources (Mali) Limited, a subsidiary of Randgold Resources Limited (LSE: RRS)(NASDAQ: GOLD) ('Randgold'), to explore and potentially develop the Bakolobi Gold Project ('Bakolobi' or 'the Project'), located 30km south of Randgold's Loulo Mine in Mali's south western region.
Pursuant to the terms of the JV Agreement:
-- Randgold is to fund all costs up to and including the completion of a pre-feasibility study for the Project as well as minimum annual work commitments;-- The initial participating interests in the JV will be 51% Randgold and 49% Taurus up to the completion of the pre-feasibility study;-- Thereafter Randgold may earn up to a 65% interest in the JV by funding the preparation of a feasibility study if Taurus elects not to, or fails to fund its proportionate share of the cost thereof; and-- Following the completion of the feasibility study, each party will be required to fund its proportionate share of all development and mining costs, failing which its participating interest will be subject to dilution.
Taurus Gold Limited Chairman, Jonathan Schneider, said "I am delighted to have entered into this JV with Randgold. Taurus believes that Randgold is the perfect strategic partner for this Project with its record of successfully developing gold projects in West Africa, allowing Taurus to focus its resources on its advanced projects in Cote d'Ivoire and Burkina Faso. Taurus will retain a material interest in the Project, while removing any funding requirement until it has advanced to the feasibility study stage."
The 120 km2 Bakolobi permit is located in the south-western corner of Mali near the Senegalese border in a prolific gold province where more than 27.3 million ounces of gold have been discovered. The permit area is bisected by among others, a major gold-bearing shear zone known as the Fekola Shear Zone, which is host to Papillion's 4.2 million ounce Fekola project, which is contiguous to, and 3km south of, Bakolobi.
Notes to Editor:
The information in this statement has been reviewed by Mr Gordon Thompson, who is Chief Executive Officer of Taurus Gold Limited and has over 20 years' experience in mining operations.
About Taurus Gold:
Taurus Gold Limited is a private gold exploration company. The Company's portfolio consists of 17 licences located in Cote d'Ivoire, Burkina Faso and Mali, within the highly prospective Birimian Greenstone Belt of West Africa. The Company's projects are in a various stages of exploration, ranging from early exploration to NI 43-101 compliant resources at Afema, Cote d'Ivoire, and Daramandougou, Burkina Faso. Additional information with respect to the Group's projects can be found on the Company's website at www.taurusgoldlimited.com.
On behalf of:
Gordon Thompson (CEO), Taurus Gold Limited
Michelle Jenkins (CFO), Taurus Gold Limited
Gordon Thompson (CEO)
Taurus Gold Limited
+2711 781 2371
Michelle Jenkins (CFO)
Taurus Gold Limited
+27 11 781 2371
+2711 548 2041