Gold mining company Kentor Gold Limited (ASX:KGL)
has partnered with geothermal exploration and development company Geodynamics Limited (ASX:GDY)
Under the two stage agreement Geodynamics will acquire up to a 70 per cent interest in Kentor’s Savo Island Geothermal Power Project in the Solomon Islands.
Geodynamics is entitled to earn an initial 25 per cent stake in the power supply project after injecting $350,000 into studies to determine drilling program targets.
Geodynamics can also earn an extra 45 per cent stake through investing $4.65 million into exploration drilling and the completion of a feasibility study for the development of a first stage geothermal power plant.
Kentor Gold booked a net loss of $3.2 million in the first half of the 2012 financial year.