The Solomon Islands Ministry of Mining granted Canada’s Sanatana Resources (TSXV: STA) a letter of intent over the 188-square-kilometre Sutakiki mineral tenure, located on the Island of Guadalcanal in the southwestern Pacific.
The LOI allows Sanatana exclusive access to negotiate with local landholders both an initial due diligence visit and, should the property pass it, a surface access agreement. Once this surface access agreement has been negotiated, a prospecting license is issued, which gives the prospecting license holder an exclusive three-year term to prospect and explore the project.
In a press release, Sanatana said that Sutakiki is the subject of an agreement between the company and CNE, a private Australian firm, that outlines the terms for Sanatana to acquire the project and to enter into a joint venture with CNE, with CNE potentially providing up to A$14.5 million in funding to Sanatana in order to earn a 92.5% interest in the property.
Hosted on the Pacific Ring of Fire, Sutakiki is located directly south of the over four million-ounce Gold Ridge property, which is planned to open for gold production by Chinese-based interests in mid-2021.