PERTH (miningweekly.com) – ASX-listed gold miner Regis Resources has signed a letter of agreement with fellow-listed Duketon Mining to hunt for gold on four of Duketon’s exploration licences, which are in close proximity to Regis’ Moolart Well project.
Regis said on Tuesday that the proposed joint venture (JV) would cover some 373 km2, and hosted a number of greenstone shear zones prospective for gold. Under the JV agreement, Regis would spend a minimum of A$1-million on exploration over a two-year period, to earn a 75% interest in any mining project developed on the tenements.
In the event of a decision to mine on any project discovered by Regis, Duketon would have the option of participating in the JV at a 25% contributing interest, selling its interest to Regis for A$850 000, or commuting the interest to a 2% net smelter royalty on all gold produced from the project.
Regis MD Mark Clark told shareholders that the agreement was an important step in Regis executing its strategy of pursuing further longevity and profitability at the Moolart Well operations.
“We look forward to exploration getting under way on the prospective gold JV area as soon as possible.”
Duketon MD Stuart Fogarty said that the agreement allowed Duketon to continue to focus on its nickel exploration, while exposing shareholders to the potential upside of gold exploration.
“It also achieves a significant cost savings on the maintenance of those tenements.”
The heads of agreement was subject to the execution of formal agreements, which would likely be executed within weeks, allowing exploration work to start by the third quarter of this year.