Legacy Minerals has signed a binding earn-in and farm-in agreement with Peak Gold Mines, a fully owned subsidiary of Aurelia Metals, regarding its Cobar Project in New South Wales (NSW), Australia.
Aurelia’s presence in the Cobar Basin, with nearby operations such as the Peak Mine and associated processing facilities, offers the potential for any discoveries at the project site to progress through to development.
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Under the terms of the agreement, Aurelia Metals can earn an initial 51% interest in the Cobar Project by funding A$500,000 ($358,690) of exploration within two years from the commencement date.
If Aurelia proceeds to stage two, it may increase its interest to 90% in aggregate by providing an additional A$1.5m for exploration activities within five years from the same date.
Following this, Legacy Minerals will retain a 10% joint venture participating interest or a net smelter return royalty on gold and base metals produced from the site.
The Cobar Project comprises contiguous exploration licences (ELs) EL9511 and EL9858.
The Cobar Basin, where the licences are located, is recognised for its copper, gold, lead, zinc and silver resources, and supports a long-standing mining workforce and infrastructure.
The involvement of Aurelia Metals, which operates mines and processing facilities and employs a locally experienced workforce, is expected to enable any discoveries at the Cobar Project to progress from exploration to possible development.
The agreement forms part of Legacy Minerals’ approach to advancing projects outside its main portfolio by working with established partners, while still maintaining an interest in any future exploration success.
During the earn-in period, Legacy Minerals will focus its expertise and financial investment on progressing its primary Mt Carrington gold-silver asset.
In the event Aurelia withdraws from the agreement, any exploration or mining data gathered will return to Legacy Minerals, allowing the company to retain the benefits of previous work.
Legacy Minerals CEO and managing director Christopher Byrne said: “Securing Aurelia Metals as our earn-in partner at the Cobar Project is a strategically significant outcome for Legacy Minerals shareholders.
“Aurelia is one of the most established operators in the Cobar Basin, and its option to sole-fund up to A$2m of exploration over five years provides a meaningful discovery opportunity for our shareholders.”
