PERTH (miningweekly.com) – Gold developer Empire Resources has entered into a two-year option agreement to acquire gold miner Evolution Mining’s interest in two prospective copper/gold licences in Western Australia.
Under the terms of the agreement, Empire will meet all the expenditure commitments, while retaining an option to purchase Evolution’s interest in the assets for either a cash or share consideration of A$500 000.
Evolution will also retain a 2% net smelter royalty, capped at A$500 000, on any minerals produced from the two tenements.
The two exploration licences abut the northern boundary of Empire’s Yuinmery copper/gold project, and include the significant A Zone copper/gold prospect.
“With an imminent cash flow anticipated from gold mining at the Penny’s Find project, Empire is keen to advance new exploration targets,” Empire MD David Sargeant said on Monday.
He noted that further drilling at A Zone should allow Empire to calculate the prospect’s maiden resource, which will significantly expand the total copper/gold resource base at Yuinmery, improving the overall economics of the project.