Legacy Minerals (ASX:LGM) has entered into a binding earn-in and farm-in agreement with Peak Gold Mines, a wholly owned subsidiary of Aurelia Metals (ASX:AMI), for its wholly owned Cobar Project in New South Wales.
Legacy Minerals says Aurelia’s operational footprint in the region, with the Peak Mine and additional processing infrastructure, provides a clear path to development for any ore body identified at the project.
Under the agreement, Aurelia will earn a 51% interest by funding $500,000 of exploration within two years from the commencement date. In the second stage of the agreement, Aurelia will earn a further 39% (90% in aggregate) by funding an additional $1.5 million of exploration work within five years from the commencement date.
Following the completion of stage two, Legacy Minerals will retain either a 10% joint venture participating interest or a net smelter return royalty on gold and base metals.
The agreement comes as Legacy Minerals focuses on its flagship Mt Carrington Project and evaluates other opportunities for its non-core assets.
Managing Director and CEO Christopher Byrne says that this partnership is “strategically significant” for the company and shareholders.
“Aurelia is one of the most established operators in the Cobar Basin, and its option to sole-fund up to $2 million of exploration over five years provides a meaningful discovery opportunity for our shareholders,” Byrne says.
“The Cobar Project sits in one of Australia’s most productive polymetallic basins, along strike from operating mines and existing processing infrastructure. Partnering with an established regional producer strengthens the development pathway for any future discovery while preserving meaningful upside for shareholders, through either continued joint venture participation or a royalty position.”
Legacy Minerals is a gold, silver, copper, and base metal exploration company operating in New South Wales.
Write to Amy Rotman at Mining.com.au
Images: Legacy Minerals
