PERTH (miningweekly.com) – Gold miner Ramelius Resources has signed a A$2-million farm-in agreement with fellow-listed Clancy Exploration over the Condobolin gold and base metals project, in New South Wales.
Under the terms of the agreement, Ramelius could earn an 80% shareholding in the project by funding A$2-million in exploration over a four-year period. The gold miner would be project manager and Clancy would be project operator during the farm-in, with the company entitled to a 10% management fee on services provided.
Clancy MD Gordon Barnes said on Thursday that the farm-in agreement with Ramelius would strengthen the junior’s exploration programme in New South Wales, providing funding to test targets.
The two companies were expected to start work at Condobolin during the June quarter.
Once the farm-in phase had been completed, Clancy would be free-carried until a decision to mine, at which point the company would either contribute to costs or dilute its 20% shareholding.
If the company’s shareholding in the project diluted to 5%, it would convert into a 2% net smelter royalty.