The Gold Ridge Community Investment Limited (GCIL) has signed a ‘Heads of Agreement’ with Frontier Resources Limited.
Documents obtained by SIBC News indicates the agreement allows Frontier Resources Limited to acquire 80 percent of the Gold Ridge mine project.
The document also reveals Frontier will issue a 19.9 percent equity in ordinary shares to the Gold Ridge Community Investment Limited and defer 20 percent interest into production which will be repayable from 50 percent of their pro-rata profits.
The Gold Ridge Community Investment Limited will have a total project equity of 35.9 percent.
Meanwhile, Frontier Resources Limited describes the signing as an excellent outcome for the company and for Goldridge landowners, the mine, its future workforce and Solomon Islands.
The company adds, a new Melanesian resource ownership model has been created in this partnership.