Australian miner S2 Resources has announced the divestment of the Fosterville tenement, transferring exploration licence EL007795 to a 100% owned subsidiary of Agnico Eagle Mines.

S2 Resources received A$17m ($11.23m) from Agnico Eagle through its subsidiary Southern Star Exploration, as part of the deal.

All conditions tied to the transaction have been met, the company said.

Combined with its existing A$4.54m in cash, S2 Resources now holds total cash of more than A$21.5m.

This improved cash position enables the company to advance its exploration programmes without needing to raise equity in the near-term.

S2 Resources’ near-term priority is the Warraweena project in northern New South Wales (NSW), where it has commenced initial reconnaissance drilling to assess geophysical targets.

The company is earning up to an 80% interest in tenure owned by Oxley Resources and is also progressing work on adjacent ground.

In Western Australia’s Jillewarra region, discussions are advancing with the traditional owners to allow the grant of tenements and start exploration on its gold targets within the Jillewarra joint venture (JV), where S2 is earning an initial 51% stake.

Discussions also include an adjacent exploration licence application that is 100% owned by S2 Resources.

These pending applications encompass an untested 60km stretch of the structure believed to host Westgold’s Big Bell gold mine and Ramelius Resources’ Never Never gold mine to the south.

S2 Resources is additionally assessing new exploration opportunities in Australia and abroad to expand its project pipeline.

In February this year, S2 Resources signed an earn-in agreement with Valkea Resources (formerly Outback Goldfields) to acquire a 51% interest in the Glenfine joint venture (JV) in central Victoria.