PERTH (miningweekly.com) – Iron-ore developer Hancock Prospecting would invest up to A$4.2-million to explore the Four Eagles gold project, in Victoria, project owner Catalyst Metals reported on Friday.
Through its subsidiary Gold Exploration Victoria, Hancock had agreed to form a joint venture (JV) with Catalyst and its existing partner Providence Gold and Minerals.
Under the JV, Hancock would take over the earn-in rights that Catalyst had with Providence, allowing the company to earn a 25% interest in the project by funding A$2.1-million in expenditure.
The miner could earn a further 25% interest in the Four Eagles project by spending a further A$2.1-million. At this point, Providence would revert to a 2.5% net smelter royalty entitlement, with Catalyst and Hancock funding ongoing expenditure.
Further, Catalyst would be reimbursed for some of its prior expenditure, as part of Hancock’s efforts to take over the company’s current farm-in obligations.
The two companies have also agreed to cooperate on an exclusive basis in relation to any further exploration or production opportunities within a designated area of around 22 000 km2, covering the entire Whitelaw gold belt.
Catalyst technical director Bruce Kay said on Friday that the JV agreement was an important milestone for the company and provided the opportunity for extensive drilling on the Four Eagles footprint within the next two years.
“The new JV will allow the advancement of the Four Eagles gold project from its discovery status through resource delineation and ultimately towards development,” Kay said.
The JV partners have already agreed on a programme and budget for the Four Eagles project and work would start as soon as possible.