Gold exploration company Goldstrike Resources has received shareholder approval of  its strategic alliance agreement with Newmont Mining and Newmont Canada FN Holdings (Newmont).

The company has also closed the initial investment by Newmont, which was listed in the agreement signed by the two parties on 4 March.

Under the agreement, Newmont will invest up to a total of $39.5m in the Goldstrike and Plateau project, which is a district-scale gold project operated by Goldstrike.

This agreement provides Newmont an opportunity to access and explore new gold district in Canada’s Yukon Territory.

Having purchased more than 12 million units of Goldstrike for a total sum of $4.5m, Newmont can earn a 75% interest in Goldstrike’s Plateau project in Yukon.

“This new strategic alliance is an excellent foundation for a long-term, mutually beneficial relationship."

Newmont can further increase its interest to 80% by funding in entirety all future expenditure incurred on the Plateau project.

However, this particular right of 80% interest can only be earned if Goldstrike exercises its financing option as described in the strategic alliance agreement.

The investment agreement was approved unanimously by the shareholders of Goldstrike on 21 April.

Goldstrike president and CEO Terrence King said: “Goldstrike is now fully funded to move forward and unlock the full potential of the district scale Plateau gold project.

“This new strategic alliance is an excellent foundation for a long-term, mutually beneficial relationship, with Newmont being the advanced explorer, mine builder and producer, and Goldstrike being the project generator, prospector and grass roots explorers, a passionate team focused on discovery.

“As we advance from prospecting to full scale exploration in an area like Plateau, we engage with the First Nation and local communities for their invaluable local knowledge and work together to achieve to our environmental and community goals, including respect for First Nation traditional rights and cultural heritage.

“We are successful when we achieve our goal of net benefit to all the stakeholders and when our operations are invaluable to the communities in which we work. Working together, we succeed.”

Goldstrike is currently preparing for systematic exploration and drilling, and is also planning to focus on areas where high-grade gold mineralisations have been discovered in bedrock.