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- De Grey Mining (DEG) enters an exploration agreement with TSX-listed explorer Novo Resources
- The deal expands DEG’s exploration footprint in the Mallina Basin of WA’s Pilbara region to more than 2500 square kilometres
- The agreement covers Novo’s Egina project, which adjoins DEG’s Mallina gold project
- DEG can earn 50 per cent of the Egina project by spending $25 million over four years and a minimum of $7 million in the first 18 months
- Shares are up 0.55 per cent and trading at $1.37 at 1:00 pm AEST
De Grey Mining (DEG) has entered an exploration agreement with TSX-listed explorer Novo Resources.
The company announced that the deal would expand its exploration footprint in the Mallina Basin of the Pilbara region to more than 2500 square kilometres.
The agreement covers Novo’s Egina project, which adjoins DEG’s Mallina gold project.
De Grey has the right to earn 50 per cent of the Egina project by spending $25 million over four years and a minimum of $7 million in the first 18 months.
The company will act as project manager during the earn-in period, so long as it holds a 50 per cent or more interest in the project.
DEG Managing Director Glenn Jardine said the deal was a “strategic” decision to improve the company’s “dominant” position in the province.
“We believe the Egina project represents extensions to the prospective geology and fertile structures along strike from of our existing discoveries,” he said.
“By expanding our exploration footprint in the region by 70 per cent, we increase the potential to discover new gold resources capable of being processed at Hemi in the future.”
De Grey has also committed to a $10 million corporate investment, increasing its shareholding in Novo to 11.6 per cent.
DEG shares were up 0.55 per cent and trading at $1.37 at 1:00 pm AEST.
