Mungana enters into farm-in joint venture with AngloGold

THE BOURSE WHISPERER: Mungana Goldmines (ASX: MUX) and its 100 per cent-owned subsidiary Nyngan Gold, have agreed to enter into a farm-in agreement with AngloGold Ashanti Australia (ASX: AGG) on the Nyngan gold project in New South Wales.

The farm-in agreement relates to exploration licences EL7751 and EL7752 and exploration licence applications ELA4288 and ELA4479.

 

Nyngan project area. Source: Company announcement

 

Details of the farm-in include:

–    AngloGold Ashanti will be the manager of the farm-in;

–    AngloGold Ashanti commits to a minimum expenditure of $500,000 in the first year, including at least $250,000 expended on geophysical surveys;

–    AngloGold Ashanti to have the right to withdraw at any point after minimum commitment is met; and

–    AngloGold Ashanti may earn 70 per cent share and form a joint venture by completing expenditure of $4 million prior to 31 December, 2017, after which Mungana can elect to contribute or dilute.

“Mungana is pleased to be partnering on this project with a company with the skills and experience of AngloGold Ashanti,” Mungana Goldmines managing director Pat Scott said in the company’s announcement to the Australian Securities Exchange.

“AngloGold Ashanti has an excellent track record of success in Australia as demonstrated by its most recent discovery at Tropicana in Western Australia.”