De Grey paves way for 50% JV interest in Egina gold project
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The news: De Grey Mining has reached its $7 million spend at the Egina gold project in Western Australia, giving the gold explorer the right to earn a 50% joint venture interest in the site's tenements.
The numbers: De Grey said it has satisfied its initial $7 million minimum expenditure commitment over a 15-month period on exploration at Egina.
The miner now has the right to earn a 50% joint venture interest in the Egina tenements by spending an additional $18 million through to 30 June 2027.
The context: Following the additional investment by De Grey, a joint venture will be formed with customary funding and dilution rights applied to both De Grey and Novo Resources.
Novo entered into an earn-in and joint venture agreement with De Grey for the company's Becher project and adjacent tenements within the Egina gold camp last year.
De Grey said it has continued an "aggressive exploration program" at the Becher project, with drilling in close proximity to De Grey's Hemi gold project.
The Perth-based miner noted that the Egina tenements are considered to be highly prospective for significant intrusion-related gold deposits and share similar attributes to the Hemi deposit.
What they said: "To be able to partner with a group like De Grey, with its nearby Hemi deposit, provides the best opportunity for us to drive value for our shareholders at Egina, through any potential new disoveries and future exploration success," said Novo executive co-chairman and acting CEO Mike Spreadborough.
"Importantly, De Grey is just starting to explore Egina, with several highly prospective areas yet to be systematically tested, providing multiple new targets to explore and build upon the platform set by De Grey over the past 12 months," he said.
Phil Tornatora, De Grey's general manager for exploration, said: "The Egina Project is an important part of De Grey's strategy to grow a large regional scale resource base around the planned Hemi processing plant."
"Egina contains major structures and geological units which extend from Hemi and is prospective for both large intrusion-hosted deposits like Hemi and orogenic gold deposits," he said.
"Large prospective areas of the Egina Project have not been explored so we believe the area still has exciting potential."
The source: ASX announcement
