Javelin Minerals’ (ASX:JAV) share price had spiked 50% to $0.003 this morning, after signing a right to mine contract with MEGA Resources for the Eureka Gold Project in Western Australia.
Under the agreement, MEGA will conduct mining and haulage to a third-party processing plant, provide geological and engineering services, as well as fund up to $25 million $25 million in development and working capital to Javelin.
Mining is scheduled to begin in the June quarter of 2026, subject to completing mining approvals and signing a binding ore purchase agreement.
Both companies will share the profits on a 50:50 basis for the North and South pits. For any additional gold deposits brought into the arrangement, profits will be shared 70:30 in Javelin’s favour.
In conjunction, Javelin is conducting a two-tranche placement to raise $4.5 million to fund exploration drilling at Eureka and the Coogee Project in Q4 2025, as well as identify and review new near-term gold production assets.
The Eureka drilling programs will focus on delineating resource extensions to the mineralised gold zones dipping north-northwest orientation to the existing resources below the Eureka pit.
Under the placement, shares will be issued at $0.0025, with 708 Capital as lead manager to the capital raise.
Executive Chairman Brett Mitchell says MEGA’s ability to provide its services will enable Javelin to advance towards production in an efficient manner.
“Javelin’s ongoing financial position will also be supported by the monthly pre-payment of $250,000 once processing commences,” Mitchell says.
“We are concurrently actively progressing discussions with third-party ore processors, the final step now in the pathway to production and revenues, following receipt of the necessary approvals.”
MEGA Resources is an Australian subsidiary of Bain Global Resources, part of the BGR Mining & Infra group – one of India’s largest mining contractors with an order book exceeding $18 billion.
The Eureka Gold Project hosts a resource of 112,000 ounces @ 1.42 grams per tonne gold, with 62,000 ounces in the indicated category.
Javelin Minerals is a gold-focused mineral explorer with assets in the heart of Western Australia’s Eastern Goldfields.
Write to Aaliyah Rogan at Mining.com.au
Images: Javelin Minerals
