PERTH (miningweekly.com) – Junior Syndicated Metals has exercised its options for a farm-in agreement with fellow-listed Newfield Resources over the Newfield gold project, in Western Australia.
Syndicated has paid Newfield A$25 000 in cash and has issued the company with 30-million shares, and ten-million options in exchange for the right to earn up to 85% in the project.
Under the farm-in agreement, Syndicated would spend A$900 000 on exploration over a two-year period.
On reporting a Joint Ore Reserves Committee-compliant mineral resource of more than 150 000 oz of gold, a further milestone payment of A$250 000 was also payable to Newfield.
Syndicated MD David Morgan told shareholders on Monday that the Newfield project formed the cornerstone of the company’s newly-established regional scale Newington project, with the farm-in agreement clearing the way for the start of exploration activity.
“With the deal now complete, we expect to be on the ground commencing our exploration activities as soon as Departmental approvals are received. The project hosts a number of walk-up drilling targets that will be progressively tested, commencing with an initial drill programme targeting extensions of the historically mined Newfield Central deposit and including test holes at Dawsons and Newfield East prospects.”