Dampier Gold and Ord River Resources have announced a farm-in and joint venture exploration at Dampier’s Plutonic Dome project.
Ord will solely find up to $6 million over two years, earning a right of up to 75 per cent interest in the project.
The first $2 million of the farm-in expenditure entitles Ord to a 30 per cent joint venture interest if it is spent within the first nine months.
Further incremental expenditures over time will give Ord an increased share in the project, up until a possible 75 per cent stake is met.
“This is a major development for Dampier in its aspiration for advancing the project towards production. We look forward to working closely with Ord to maximise the near term potential of the Plutonic Dome project,” Dampier managing director Richard Hay said.
“Access to capital is very challenging and potentially highly dilutive for junior resource companies such as Dampier. The board is determined that it is prudent management to seek a partner to share in the risk, whilst preserving shareholder exposure to the potential upside of the project,” he added.
Dampier bought Plutonic from Barrick Gold in 2010.
It currently contains approximately 683,000 ounces of gold, with the two companies exploring area with a view to near-term gold production.
Dampier Gold closed the day at 2.6 cents per share.
