Western Yilgarn (ASX:WYX) has executed a binding term sheet with privately held Fleet Street Holdings to earn-in between a 51% to 80% interest in 4 tenements in Western Australia.
Western Yilgarn, which has just shy of a $7 million market capitalisation, says the tenements sit along the ‘highly prospective’ Holmes Dyke and Ida Fault regions of Western Australia — adding an additional 207km-square to its Bulga Project.
The tenements include targets on the Mount Holmes Gabbro, an underexplored mafic/ultramafic dyke complex that is considered prospective for magmatic nickel-copper sulphide mineralisation.
Western Yilgarn Chairman Peter Lewis says the proposed farm-in and joint venture (JV) with Fleet Street “could not happen at a better time”.
“Bulga’s already strong footprint with proven prospectivity at the intersection of the Holmes Dyke and Ida Fault is considerably enhanced by this strategic venture.
The opportunity to extend Bulga’s footprint by an additional 207km-square provides an excellent setting for exploration to look for potential next-generation discoveries to meet the demands of a growing nickel and copper market.”
Key terms of the JV and farm-in agreement include Western Yilgarn earning a 51% interest by spending $250,000 on exploration by 28 February this year, including 1,500m of reverse circulation (RC) drilling.
Once complete, an unincorporated JV will be formed. If Fleet Street elects not to contribute to expenditure on a pro-rata basis, Western Yilgarn can earn an additional 29% (total 80%) interest by spending a further $250,000 on exploration.
In the event of this, Fleet Street’s remaining 20% interest will be free carried until a decision to mine.
Other terms include Western Yilgarn reimbursing Fleet Street close to $95,000 in respect of historical exploration expenditure.
Western Yilgarn is an ASX-listed explorer with a ‘strong’ focus on green metals.
The company’s Bulga project sits 50km to the southwest of Gold Fields’ (JSE:GFI) Agnew Gold project in Western Australia and comprises 6 granted contiguous exploration licences which cover a combined area of 477km-square.
As of 30 December 2023, Western Yilgarn had $1.402 million cash and cash equivalents at hand, according to its latest quarterly report.
Write to Adam Drought at Mining.com.au
Images: Western Yilgarn
