Venus Metals builds net smelter royalty to 1% at Youanmi Gold Project in WA

Western Australia-based exploration company Venus Metals Corporation (ASX:VMC) has entered an agreement to acquire a 0.3% net smelter royalty (NSR) from St Clair Resources at the Youanmi Gold Project in Western Australia.

The company reports this acquisition will be completed through its wholly owned subsidiary Redscope Enterprises, which currently holds a 0.7% NSR at Youanmi. Once this transaction is complete, Redscope’s royalty holding will increase to 1%.

As part of the agreement, Venus has already paid a $50,000 deposit at execution of the agreement, and will pay a further $450,000 cash and issue 3 million fully paid ordinary shares at an issue price of $0.18 per share at completion. Completion of the acquisition is expected to occur within 30 days of execution.

Venus reports the shares being issued will rank equally with the existing fully paid ordinary Venus shares then on issue, but will be subject to a 3-month voluntary escrow from the date of completion.

The company considers this acquisition of the additional NSR will provide ‘significant’ value to Venus if the Youanmi Gold Project goes into production

The company considers this acquisition of the additional NSR will provide ‘significant’ value to Venus if the Youanmi Gold Project goes into production.

Venus Metals Corporation is a Western Australia-based exploration company focused on gold, lithium, rare earths, vanadium, and base metals. The company’s major gold project is the Youanmi Gold Mine, located 500km northeast of Perth. The project is jointly owned by Venus and Rox Resources (ASX:RXL), with the companies holding a 30% and 70% interest respectively.

Images: Venus Metals Corporation Limited
Written By Harry Mulholland
Hailing from the Central Coast region of NSW, Harry is a passionate journalist with a background in print, radio and ESG news. When not bashing away on his keyboard, he can be found brewing a coffee or playing with his dog.