Macro Metals (ASX:M4M) and Renegade Metals have entered a profit-sharing and mining services deal for the Gibraltar East Gold Project, 22.6km southwest of Coolgardie in Western Australia’s Kalgoorlie-Boulder region.
According to the deal, Macro will acquire up to a 50% interest in all minerals deposited on Gibraltar East by investing $350,000 in exploration, permitting, development, and mine establishment activities within a year of execution.
Macro’s subsidiary Macro Mining Services will exclusively deliver all mining services and execute all technical, permitting, exploration, development, and operational services at cost, plus a 15% margin.
Initial work will target gold-bearing ore, followed by other commercially viable minerals.
“The agreement with Renegade is a further example of the commercial framework we are building for Macro; namely, utilising Macro Mining Services’ site-based project and operational delivery capability to generate mining services revenue, while also securing Macro Metals Limited’s direct participation in value upside generated from a successful mining operation,” Managing Director Simon Rushton says.
“I genuinely appreciate the collaborative approach taken by the Renegade team in reaching this mining services and profit share agreement and look forward to progressing the project in a safe, disciplined, and financially rewarding manner.”
Macro now plans to provide a working capital facility with 10% interest charged per annum to fund all activities. As part of the deal, it will also pay state government and native title royalties.
Technical reviews, data consolidation, permitting, and Aboriginal heritage engagement are likewise underway, with field validation and exploration activities following shortly after.
Macro Metals is an iron ore, manganese, and construction material exploration, mining, and mining services provider. The company has assets in Western Australia and Nigeria.
Write to Richard Szabo at Mining.com.au
Images: Macro Metals
