E79 Gold Mines (ASX:E79) has entered into an earn-in and joint venture agreement with Scorpion Minerals (ASX:SCN) over the Jungar Flats Project in Western Australia.
Under the agreement, Scorpion can earn up to a 70% interest in the project by spending $3 million on exploration over a five-year period, including a cash payment of $100,000 and meeting expenditure milestones.
As such, Scorpion will be the manager of the Jungar Flats Project — expanding its total landholding in the Murchison region to 1,600km2.
In conjunction, Scorpion is conducting a placement to raise $1.5 million to fund exploration across the Murchison gold portfolio, as well as cover the costs of the deal.
The issue price of $0.02 per share represents a 33% premium to the company’s last traded price of $0.015 per share.
Scorpion CEO Michael Fotios says this agreement now makes Scorpion the “largest landholder along the highest prospective Big Bell-Dalgaranga shear corridor”.
“With drilling contractors already secured, we plan to have rigs mobilised by the end of February with drilling to commence shortly thereafter,” Fotios says.
E79 Gold Mines says this opportunity allows for the company to technically and financially focus on other near-term discovery opportunities.
CEO Ned Summerhayes says the company has reduced its expenditure commitments while remaining exposed to any exploration success going forward, with the joint venture allowing E79 to focus on discoveries at Laverton South and Mountain Home.
At the Laverton South Gold Project in Western Australia, the company is planning to conduct aircore drilling to test targets in the coming months.
Meanwhile, at the Mountain Home Project in the Northern Territory, E79 Gold Mines is preparing to conduct initial drilling under the project’s gossan. Regulatory approvals are underway and drilling is scheduled to begin between May and November 2025.
E79 Gold Mines is a junior mineral explorer that holds 1,838km2 of ground within Australia considered prospective for gold and copper.
Scorpion Minerals is an Australian explorer and resource developer focused on a diverse range of minerals.
Write to Aaliyah Rogan at Mining.com.au
Images: E79 Gold Mines
