Godolphin Resources (ASX:GRL) has entered an option agreement to divest its wholly owned Gundagai Project in the Lachlan Ford Belt in New South Wales to privately held Gilmore Minerals.
Gilmore has paid a cash consideration of $50,000 upon facilitating land access for exploration of the tenements, and is now required to spend a minimum of $20,000 on exploration before the option period expires in six months.
The tenement package comprises mineral claims Gundagai North, Gundagai South, Gundagai, and Gadara.
If Gilmore elects to acquire 100% of the tenements, the company will be required to pay another $150,000 within 30 days, also covering costs of tenement transfers.
Upon completion of the option period, by not electing to acquire the Gundagai tenements, Gilmore will still be required to pay the difference between exploration expenditure incurred and the agreed minimum.
Godolphin Managing Director Jeneta Owens says the agreement will provide additional non-dilutive funding as the company continues to advance a number of exploration and development initiatives at its other projects.
“This agreement is structured so that Gilmore manages exploration costs and tenement upkeep on the Gundagai project in the initial six-month term, and Godolphin secures additional funding should they wish to exercise the option,” Owens says.
“It delivers a number of positive outcomes to shareholders, including reduction in our own exploration expenditure, an upfront payment, Godolphin retaining ownership in the initial term and flexibility to channel additional resources to Lewis Ponds and Narraburra.
“This agreement marks the continued adoption of a more specific project scope and plans to continue to focus on our more advanced projects such as Lewis Ponds and Narraburra, which we are working through a number of options to unlock value.”
Write to Maddison Elliott at Mining.com.au
Images: Godolphin Resources
