Great Divide Mining (ASX:GDM) has completed a definitive agreement with Dart Mining (ASX:DTM) to farm-out the Coonambula Project including the historical Banshee Antimony Mine in Queensland.
Under the definitive farm-in joint venture deal, Dart Mining can earn a 51% interest in the project. Dart will initially take a 15% stake by paying $250,000 cash to Great Divide within five business days.
Dart will gain a 51% interest by conducting a minimum of 4,000m of drilling and preparing two geological and resource reports over a two-year period. The company has been appointed manager to operate the Coonambula project.
Great Divide, which has a market capitalisation of $21.22 million, says this agreement confirms the company’s material advancement, consistent with its strategic plan to progress from explorer to explorer-miner-producer.
CEO Justin Haines says this deal enables Great Divide to focus on project development, operation, and near-term cashflow.
Meanwhile, Dart will manage an induced polarisation ground geophysical survey at the Banshee antimony-gold prospect. The company will also undertake initial drilling to infill existing antimony-gold intersections at the Banshee Mine.
The company intends to work towards a JORC-compliant resource of antimony-gold at the earliest opportunity.
Dart Chairman James Chirnside says the Coonambula Project holds potential to define an intrusion related gold system within a region of Queensland hosting similar multiple mutli-million ounce gold resources.
The Coonambula Project, located 390km north-northwest of Brisbane, comprises five granted exploration permits and covers 282km2.
Write to Aaliyah Rogan at Mining.com.au
Images: Great Divide Mining
