Duketon Mining inks gold JV with Regis Resources

THE BOURSE WHISPERER: Duketon Mining (ASX: DKM) and Regis Resources (ASX: RRL) have struck up a gold only exploration Joint Venture over four of Duketon’s exploration licences in Western Australia.

The licences are contiguous with some of Regis’ tenure in proximity to its Moolart Well project.

The joint venture tenure covers approximately 373 square kilometres and hosts a number of shear zones considered to be prospective for gold, including a northern strike continuation of the shear zone hosting Regis’ Petra gold deposit and part of a shear zone extending north of the Garden Well gold deposit.

Regis will make an up-front payment to Duketon of $100,000 and will be required to spend a minimum of $1 million exploring for gold on the tenure, over a two year period, to earn a 75 per cent interest in any mining project its decides to go ahead with.

All non-gold mineral rights remain with Duketon and should Regis not confirm a decision to mine within two years, Duketon gets the gold rights back.

Should Regis decide it does want to mine any gold deposit that may be discovered, Duketon will have the options of:

Participating in a mining joint venture at a 25 per cent contributing interest (subject to some capital funding assistance from Regis);

Selling its interest in the mining project to Regis for $850,000; or

Commuting the interest to a 2 per cent net smelter royalty on all gold produced from the project.

These options will relate to each separate discovery on which a decision to mine is made by Regis.

“This is a great outcome for both companies and a true win-win,” Duketon Mining managing director Stuart Fogarty said in the company’s announcement to the Australian Securities Exchange.

“It allows Duketon to continue to focus on nickel exploration whilst exposing our shareholders to the potential upside of gold exploration by Regis.

“It also achieves a significant cost savings on the maintenance of those tenements.

“Duketon is now well positioned to drive value from three approaches – our nickel exploration programs over our highly prospective 100 per cent-owned tenure, our gold exploration across our 100 per cent-owned tenure which may provide future mining or divestment opportunities and this gold Joint Venture with Regis in respect of four of our tenements over the Duketon Greenstone Belt.”

 

Website: www.duketonmining.com.au