PERTH (miningweekly.com) – Junior Rox Resources’ subsidiary Helios Gold has taken an option to acquire the Bronzewing South gold project, in Western Australia, from privately held Carnegie Exploration.
Under the terms of the option agreement, Helios will pay a non-refundable cash deposit of A$20 000 for the six-month option period, and will pay a further A$80 000 and issue two-million shares in Helios to Carnegie on the successful initial public offering (IPO) and ASX-listing of Helios.
A further A$725 000 in cash or Helios shares will be handed over when an inferred mineral resource of more than 250 000 oz of gold is announced on the tenements, and a further A$1.25-million in either cash or shares when an indicated mineral resource of more than 500 000 oz is announced.
Rox said on Wednesday that the Bronzewing South gold project complemented Helios’ existing Mount Fisher gold project, which hosts a mineral resource of one-million tonnes, at 2.7 g/t gold for 89 000 oz of gold.
The Bronzewing South project comprises seven tenements covering 115 km2 located to the south and west of the Bronzewing gold mine.
Helios is planning to aggressively explore the tenements, and the Mt Fisher tenure, in its successful IPO and ASX listing.
Rox is initially expected to hold a near 33% interest in Helios, which will have a separate management team and board.