Nexus Minerals (ASX:NXM) has signed a memorandum of understanding (MoU) with Macro Gold Mining Services to work together exclusively to deliver the Crusader-Templar gold deposit, part of the company’s Wallbrook Project east of Kalgoorlie.
Macro Gold Mining is a gold-focused mining services company, owned by Macro Mining Services, which is a subsidiary of Macro Metals (ASX:M4M) and Goldfields Technical Services.
The MoU outlines collaboration on the planned mining operation, including approvals, operational study inputs, grade control drilling and mine design, an offtake agreement (OPA), working capital, and profit share arrangements.
Under the plan, Macro Gold Mining will fund the development, mining, and operational costs, effective immediately, with Nexus Minerals earning 60% of profit and Macro Gold Mining earning 40% after costs.
The MoU is non-binding, apart from the exclusivity and confidentiality provisions, and is a step towards a binding agreement for the planned mining operation. The MoU is set for a term of six months from the date of the agreement.
Nexus Minerals Managing Director Andy Tudor says that the company is “excited about the partnership”.
“The parties have been working together in an informal capacity for a period of time, and with the last remaining approval secured, it is a natural progression to cement the relationship with the establishment of this MoU to facilitate the planned development of the Crusader-Templar gold deposit,” Tudor says.
Macro Metals and Macro Gold Mining Managing Director Simon Rushton also notes that the companies are pleased with the formal relationship that has been established.
“The Crusader-Templar gold deposit is an exciting project, and we look forward to progressing an ore purchase agreement with one of the two counterparties that we have been actively engaged with through resource due diligence in recent weeks,” Rushton says.
“This MoU is a natural precursor to a binding agreement with Nexus, so that collectively, we can take advantage of historically favourable gold prices by commencing mining operations as soon as possible.”
Nexus Minerals is actively exploring for gold deposits in the Eastern Goldfields of Western Australia.
Write to Amy Rotman at Mining.com.au
Images: Nexus Minerals
