Two Perth-based gold explorers have reached a deal to have acquired mining projects in Kalgoorlie.
Perth-based explorer Dundas Minerals has reached a deal with Horizon Minerals to acquire a stake in its Kalgoorlie exploration projects.
The two ASX-listed companies reached a joint venture agreement under which Dundas has the option to acquire an 85 per cent stake in tenements at Horizon’s Windanya and Baden Powell gold projects near Kalgoorlie.
Subiaco-based Dundas announced the binding option and JV agreement on Wednesday morning, with the first stage of exploration for both projects expected to begin in September.
The exploration miner forecasts to pay Horizon a $500,000 non-refundable fee to obtain access to mineral rights over 16 prospecting licenses, in addition to three mining leases.
Under the proposed deal, Dundas is expected to pour $500,000 into exploration of the tenements over a 2-year period.
If the deal is executed, Nedlands-based gold producer Horizon is expected to sell 85 per cent of the tenements to Dundas for $1 million while retaining priority ore processing rights.
Both projects are located within the Bardoc Tectonic Zone, 35 kilometers north-west of Karratha.
Horizon chief executive Grant Haywood said the projects were expected to reduce holding costs and bring additional cash and investments into the business.
He added the joint venture granted the freedom to track the projects development from afar.
“This option agreement with Dundas fits this strategy via monetising non-core assets to a very capable team to take the project forward,” Mr Haywood said.
In addition to gold and arsenic, Dundas Minerals managing director Shane Volk said the samples were expected to test anomalies related to other minerals, such as nickel.
“We are keen to commence the first phase of exploration in coming weeks,” he said.
“Being so near to Kalgoorlie, the Goldfields Highway, and several gold plants, the economics of advancing a gold deposit from within these project areas into production, and generating income for the company are favourable”.
Dundas is focused on battery-minerals and gold exploration near Kalgoorlie and Albany.
Shares last traded at eight cents for Dundas, and four cents for Horizon at 2.17PM AEST.
