PERTH (miningweekly.com) – The share price of junior Australian Mines rose nearly 67% on Friday following the company’s announcement that it had entered into a farm-in and joint venture (JV) agreement with fellow-listed Mount Magnet South.
The farm-in and JV agreement covered the Jumbulyer gold and copper project, in Western Australia, and could see Australian Mines earn a 60% stake in the project by spending A$1-million on exploration within the next two years.
On spending the first A$1-million, Australian Mines had the option to acquire a further 20% shareholding in the project by spending another A$2-million within 48 months of completing its initial 60% acquisition.
Australian Mines would free carry Mount Magnet South’s residual 20% interest in the project to the completion of a prefeasibility study, at which point Mount Magnet could elect to contribute on a pro-rata basis, or dilute its shareholding in the project.
The company had the right to withdraw subject to spending a minimum of A$200 000 in exploration.
“This is an exciting project for Australian Mines. It is our intention to review the historic work carried out over the Jumbulyer project and construct a geological model based on this data,” said MD Benjamin Bell.
Following this, a work programme would be established to advance a number of targets already identified within the copper/gold project.
Jumbulyer consists of 31 granted and pending tenements covering 129 km2.
Australian Mines shares were trading at a high of A$0.005 on Friday.