Gold mining company Matsa and Linden Gold Alliance have signed a joint venture agreement (JVA ) pertaining to the Devon Gold Pit in Australia.

According to the binding profit-sharing JVA, Matsa will receive a $4m upfront prepayment in cash from Linden for a 50% profit share in the Devon Pit.

Linden has already made a $100,000 non-refundable deposit to Matsa in accordance with the non-binding indicative term sheet signed on 7 October 2022 for a 50/50 development and profit-sharing joint venture for the Devon Pit.

The remaining $3.9m is planned to be paid by Linden no later than 9 December 202.

Matsa will receive 50% of the profit from the project once the $4m and free-carried costs are repaid to Linden.

In a press statement, Matsa said: “Matsa is not obligated to repay the $4m or carried costs, these costs are only repaid to Linden if the Devon Pit makes a profit.”

A JV committee is also planned to be formed, which will comprise two representatives each from Matsa and Linden.

The Devon Pit mining operation is located on the Devon project within the Lake Carey Gold Project in the Eastern Goldfields, Western Australia.

Currently placed on care and maintenance, the Devon Pit was mined by GME Resources during 2015 and 2016.

Linden completed additional scoping work on a pit restart and plans to undertake a definitive feasibility study on the Devon Pit restart.