Perth-based junior Everest Metals Corporation has announced it will be able to begin mining at the Mt Dimer Taipan gold and silver project next month.
Perth-based junior Everest Metals Corporation has announced it will be able to begin mining at the Mt Dimer Taipan gold and silver project next month.
Mark Caruso-chaired Everest said it had entered into a right to mine agreement with MEGA Resources Pty Lid, which is subsidiary of Bain Global Resources, with MEGA providing a maximum of $18.6 million towards working capital and development funding.
This follows on from news back in early August that Everest had received approval from the WA Department of Mines, Petroleum and Exploration in relation into its mining proposal and mine closure plan at Mt Dimer – paving the way for Tuesday’s announcement.
Under the agreement, MEGA is responsible for all mining operations, along with overseeing project-based approvals.
Additionally, it will bankroll and manage all operating costs, with budgets approved by a joint management group.
Once working capital has been recovered, profits will be split evenly between Everest and MEGA.
Everest last traded at 12.5 cents, down 4 per cent, as of 10.10am AWST.
Mr Caruso told the market that the agreement was an opportunity for the junior to get into production quickly, which could aid its additional assets in Western Australia.
“MEGA and Bain bring a turnkey, fully funded proposition to the table with equipment and infrastructure ready to commence in November 2025,” Mr Caruso said.
“This agreement provides an excellent fast-track opportunity for EMC to capitalize on the current high gold and silver prices.
“Furthermore, it allows future potential funding of the Revere and Mt Edon projects without further shareholder dilution.”
Back in 2021, Everest reported that Mt Dimer Taipan, located 150km from Kalgoorlie, had an inaugural maiden inferred mineral resource estimate of 722,000 tonnes at 2.10 grams per tonne of gold for 48,545 ounces of gold – along with 89,011oz of silver.
“The Mt Dimer Taipan resource remains open to the south and down dip, with strong potential to extend mineralisation along the southern strike,” Everest said.
“This indicates significant opportunity for identifying additional gold and silver resources within the Mt Dimer Taipan project and the surrounding tenements.”
As of 10.23am AWST, Everest shares were down 4 per cent to 12.5 cents.
