NewMines, through its wholly-owned subsidiary Tobon Tondo controls the prospective 250 km² Karan gold project and the 16 km² Diatissan gold project in western Mali.

Achieved at a low cost price of £250,000 to be satisfied wholly through the issue of 20,000,000 new ordinary shares, the transaction is in line with the company’s strategy to build on its existing portfolio of prospective African gold projects.

Alecto CEO Mark Jones said the Karan Project is a large tenement with excellent geophysical and solid gold anomalies as well as widespread artisanal mining operations.

"In 2011, Newmont Mining Corporation obtained its highest Bulk Leach Extractable Gold (‘BLEG’) results on the Karan Project when it undertook regional exploration. Multiple targets have been identified, with two positioned for near term drilling," Jones added.

"Our existing knowledge of the area, obtained from the management team’s previous role in its development, will be highly beneficial and we have identified that RAB drilling, utilising our in-house equipment will best uncover the Karan Project’s wider potential."

Located approximately 90km southwest of the Malian capital Bamako, the Karan Gold Project returned low grade gold halos along with high grade intercepts of up to 11 g/t Au during a RC drill program, conducted in 2011.