PERTH (miningweekly.com) – The joint venture (JV) between ASX-listed Bulletin Resources and fellow-listed Matsa Resources have sold a 400-m-wide strip of its Lake Rebecca gold project, in Western Australia, to junior Apollo Consolidated, for A$5.6-million.

Apollo on Tuesday said that the strategic purchase around its own Rebecca deposit allowed for more space for future pit design, pit infrastructure and hydrology, with the additional area also to be evaluated as part of ongoing exploration targeting and possible optimised pit extensions.

The consideration included 10.75-million shares in Apollo, which will be issued up-front, and A$250 000 in cash, payable on the satisfaction of certain conditions.

A further A$1-million will become payable on the granting of a mining lease to Apollo over the sale area, or within 24 months of signing, with the amount payable in either cash or Apollo shares.

A further A$1-million will also be payable, in either cash or shares, on Apollo’s decision to mine its Rebecca deposit, or within 48 months of signing the agreement.

Bulletin, which holds an 80% interest in the JV, and Matsa, which holds the remaining 20% interest, will split the consideration in proportion to their respective interests in the JV, with Matsa to forgo its 1% royalty on the area disposed.

“The sale of this small area of the JV ground to Apollo provides a win-win situation for both parties. Apollo can get on with progressing development of its Rebecca gold project without tenement boundary restrictions, and the JV can continue to exploit the exploration potential of its ground now having illustrated value,” said Matsa and Bulletin chairperson Paul Poli.

“It’s great that any success in Apollo will now reward both Matsa and Bulletin through their shared shareholding in Apollo.”

Poli noted that the sale allows Bulletin to continue with its current planned exploration at Lake Rebecca, fully funded. Results from the current programme are expected in the coming weeks.