Beacon Minerals (ASX:BCN) has entered into a binding offer letter to acquire up to 100% of the Lady Ida Gold Project in Western Australia.
Beacon, which has a $105.18 million market capitalisation, says the offer letter sets out the terms and conditions upon which Beacon (or its nominee) and Geoda and Lamerton (together GL) agree to enter into an earn‐in and joint venture agreement in relation to Lady Ida in which Beacon could acquire interests in the asset.
Key terms of the agreement include GL and Beacon developing a mining operation on tenement M16/262 (one of 7 licences that make up the project area), and Beacon completing an agreed exploration program on the remaining mining leases.
Other terms include Beacon managing the project including paying all rents, rates and taxes; and Beacon reimbursing GL for exploration expenditure and tenement costs incurred by GL on the project from 23 September 2023 to the date of the execution of the earn-in and JV agreement.
The aforementioned costs are expected to be about $500,000 which include tenement rents and exploration drilling costs.
Beacon notes the start of the earn-in and JV is subject to conditions precedent, including a transfer of the 100% legal interest in the Lady Ida Project by GL by the Department of Mines, Industry Regulations, and Safety (DMIRS), shareholder, regulatory, and third-party approvals, as well as a director appointment.
The company states if these conditions are not satisfied on or before 30 May 2024 or such other date agreed to by both parties, any party may terminate the agreement.
The earn-in and JV are expected to ‘significantly’ increase the Beacon’s existing mine life.
GL acquired a beneficial interest in Lady Ida on 23 September 2023 and is currently awaiting the transfer of the legal interest in the tenements by the DMIRS, which is expected to occur shortly.
Lady Ida sits about 29km from Beacon’s Jaurdi Gold Processing Plant, which in turn sits only 50km from the historic mining centre of Kalgoorlie.
Write to Adam Drought at Mining.com.au
Images: Beacon Minerals
