Rox Resources has entered in a $3 million binding term sheet deal with Venus Metals (VMC) in acquiring the majority of Youanmi gold mine in WA.
The initial agreement shows Rox Resources acquiring 50 per cent interest in the project.
Rox will also sole fund $2 million towards drilling programmes and other relevant on-ground expenditures.
Rox can also increase its stake in the joint venture by June 2021 by acquiring an additional 20 per cent from VMC through further payment of $3 million.
ROX has gone up 31.3 per cent in the ASX today.
VMC lowered almost three per cent in the ASX.
Venus Metals Managing Director Matthew Hogan says the agreement with Rox Resources was made in regard for minimal dilution to the shareholders.
The mine is currently held by Oz Youanmi Limited (OYG) and is on care and maintenance.
Venus metals is a party to a Call Option Deed pursuant, which it has been granted the option to acquire all of the issued share capital in OYG on or before June 30 this year.
Rox Resources is undertaking an ‘aggressive’ near mine exploration immediately.
“Since our new CEO Alex Passmore joined the company, our efforts to identify a suitable development project have increased and we look forward to the potential we believe exists at Youanmi,” Rox Resources Chairman Stephen Dennis said.
Site infrastructure includes a CIP process plant, tailings disposal facility, mine offices, combined core shed and workshop, mine village, access roads, and airstrip.