ASX-listed Venus Metals has successfully formed four joint ventures in Western Australia with ASX-listed Rox Resources, with Venus receiving $2.5-million and 25-million shares from Rox.
The Youanmi Gold Mine Joint Venture (OYG JV) is 50%-owned by each company, with Rox having the obligation to spend $2-million on drilling and other ground exploration, together with two years of holding costs, including rents and rates.
Rox can increase its stake in OYG JV before June 30, 2021, after acquiring an additional 20% from Venus for $3-million, or a payment of $1.5-million and issue of $1.5-million worth of Rox shares.
Venus also holds a 0.7% net smelter return production royalty over all gold and other minerals produced from OYG JV tenements.
The OYG JV will initially undertake around 14 500 m of reverse circulation (RC) drilling, starting July.
Venus MD Matthew Hogan commented on Friday that the Youanmi gold mine itself, with its substantial gold resources and infrastructure, was the last major piece needed to complete the company’s tenement consolidation over the highly prospective Youanmi greenstone belt.
Settlement of the OYG JV initiated the formal formation of three regional exploration JVs, which are the Venus JV, Youanmi JV and the Currans Find JV.
With the Venus JV, currently 100%-owned by Venus, Rox is earning a 50% gold rights interest only in certain tenements, by spending $800 000 on exploration. Once Rox earns 50% of this JV, the company will contribute equally and there is no option to increase the stake.
For the Venus JV, RC and air core drilling are planned along strike from the Spectrum Penny West North discovery and at the Golden Victoria prospect, also starting July.
In the Youanmi JV, currently 90%-owned by Venus, Rox is earning a 45% in gold rights interest in certain tenements, by spending $200 000 on exploration. Once Rox earns the 45% stake, the companies will contribute equally and there is no option to increase the stake in the JV.
Drilling targets are being evaluated for this JV, with Venus as the manager.
Further, Venus and Rox each have a 45% stake in the Currans Find JV, where recent drilling has outlined high-grade intersections around the old Currans Find and Currans North workings. The companies planned to start with additional RC drilling in July to follow up on initial results.