THE BOURSE WHISPERER: Rox Resources (ASX: RXL) has struck a Joint Venture with Venus Metals (ASX: VMC) to jointly explore the Youanmi shear zone in Western Australia.
The JV includes a large tenure position along strike from the high-grade Penny West gold deposit.
Rox will acquire an initial 50 per cent interest in the Youanmi gold mine JV (OYG JV) with the ability to increase to 70 per cent.
Rox will manage the project.
The Youanmi gold mine is currently held by Oz Youanmi Pty Ltd (OYG) and is on care and maintenance.
VMC is a party to a Call Option Deed under which it has been granted the option to acquire all of the issued share capital in OYG on or before 30 June 2019.
VMC also holds a substantial regional tenement position and as a 90 per cent participant in JV with a third party.
The agreement between Rox and VMC results in the formation of two further JVs: the VMC Joint Venture, and the Youanmi Joint Venture, granting Rox the right to earn 50 per cent and 45 per cent respectively of the gold rights on those tenements.
VMC is to be the manager of these joint ventures initially with Rox to take over operatorship if it elects to move to a 70 per cent interest in the OYG Joint Venture.
“The acquisition of the Youanmi gold project is consistent with the company’s stated objective of acquiring near-production assets within its financial capacity,” Rox Resources chairman Stephen Dennis said.
Since our new CEO Alex Passmore joined the company, our efforts to identify a suitable development project have increased and we look forward to realising the potential we believe exists at Youanmi”.