Castle Minerals Limited  and Dundee Precious Metals Incorporated have entered into a Heads of Agreement regarding two of Castle Minerals’ concessions in north west Ghana.

Under the agreement, Dundee Precious Metals is able to earn up to an 80% stake in the two Wa South concessions. Dundee Precious Metals has agreed to provide a minimum initial investment of $500 000 within the first 12 months. Dundee Precious Metals is then able to secure a 51% stake in the prospects should it fund exploration by up to $2.3 million, an additional 14% will be secured if Dundee Precious Metals provides a further $1 million for exploration activities and the final 15% stake will be earned should Dundee Precious Metals provide a final payment of $5 million to be put toward further exploration. The agreement is subject to a 60 day due diligence period.

Castle Minerals will be responsible for operating the joint venture during phase one and will earn a management fee as well as a cash payment of $50 000. Castle Minerals Kpali gold discovery and Bundi gold/zinc discovery are located within the JV area which covers the Degbiwu prospecting license and the Gbiniyiri reconnaissance licence for a total area of 1 200 kilometers which will be the focus of exploration by Dundee Precious Metals.

Castle Minerals will continue exploration of its gold targets in Ghana and developing the near surface Julie West and Danyawu gold resources that total 487 100 t @ 4.4g/t gold.

Castle Minerals Managing Director, Mike Ivey, commented, “It is very pleasing to have a Company of the caliber of Dundee join us in our exploration effort and allows our highly prospective southern WA Project concessions to continue to be aggressively explored.”

Castle Minerals is an ASX listed gold exploration company with five project areas covering more than 11 000 km2 in Ghana, West Africa.

Dundee Precious Metals is a TSX listed Canadian-based, international mining company engaged in the acquisition, exploration, development and mining and processing of precious metal properties.