PERTH (miningweekly.com) – Junior Great Boulder Resources has inked an earn-in agreement with fellow-listed Mithril Resources under which it could earn an 80% stake in the Lignum Dam gold/nickel project, in Western Australia.
Under the terms of the agreement, Great Boulder will take an initial 51% interest in the project by spending A$400 000 on exploration over a two-year period
The Stage 2 exploration would see Great Boulder spend an additional A$600 000 over the next two years, to increase its stake to 80%.
Mithril’s 20% interest in the project will remain free-carried to a decision to mine.
Great Boulder MD Andrew Paterson on Monday said that the Lignum Dam project was an ideal complement to the company’s own Whiteheads project.
“This is a strategic acquisition, given its location adjacent to Whiteheads and also the fact that there is potential for both gold and nickel within the area. It fits nicely into our exploration strategy.”
Paterson said that it was an easy earn-in deal with no dilution to shareholders.
“We will incorporate the Mithril data into our Whiteheads database and prioritise exploration targets accordingly. Mithril has done a lot of good work at Lignum Dam which will give us a good head start.”