Malagasy Minerals has completed a US$3.75 million joint venture with Canadian company Energizer Resources to accelerate its exploration for vanadium and industrial minerals in Madagascar.
The Perth-based company has already received a US$250,000 deposit, and will receive a further US$2 million in cash and US$1.5 million in Energizer shares.
The joint venture is owned 75 per cent by Energizer and 25 per cent by Malagasy and will explore for vanadium and industrial minerals within 40 per cent of Malagasy’s tenement holding in south Madagascar.
Energizer holds only the rights to search for vanadium and industrial minerals, with Malagasy retaining rights to explore for other minerals.
Energizer will solely fund exploration and holding costs, and will manage operations undertaken by the joint venture.
Malagasy chairman Max Cozijn said the deal allows the company to continue to focus on primary targets of copper, gold, silver and nickel while retaining ownership of all its properties.
“This agreement recognises Energizer’s skill and focus on the development of vanadium and other industrial minerals,” he said.
“Through this partnership, Malagasy will be able to draw on Energizer’s exploration personnel and facilities when feasible to assist in the company’s own exploration activities.”
Malagasy shares were steady at 2.9 cents at 10am WST today.
