Discovery Metals Ltd. (ASX:DML) announced yesterday that it has signed a joint venture agreement regarding the Botswana-based Dikoloti nickel project with BCL Ltd. and Japan Oil, Gas and Metals National Corp. (JOGMEC).

Terms of the agreement include:

  • the JOGMEC-DML JV grants to BCL the exclusive right to acquire a 51.0% interest in the Dikoloti Project (BCL Participating Interest). The BCL Participating Interest will only be achieved if BCL is able to convert the prospecting licences (which make up the Dikoloti Project) into ‘mining licences’ under applicable Botswana law and will be established at the time the mining licences are issued;
  • if BCL is able to do this by 31 December 2014 or such other agreed date between the parties, during an additional prospecting licence period, then under the New JV, BCL will have earned the BCL participating interest and the participating interests of JOGMEC and the Company in the Dikoloti Project will be reduced to 35.3% for JOGMEC and 13.7% for the Company;
  • BCL will be the ‘Operator’ of the New JV when the BCL Participating Interest is achieved;
  • JOGMEC, DML and BCL will thereafter continue to explore, and each party will be responsible to fund its pro rata share of future costs under the New JV.

Click here to read the full Discovery Metals Ltd. (ASX:DML) press release.