PERTH (miningweekly.com) – Gold miner St Barbara has completed the first phase of an earn-in agreement with fellow-listed Australian Potash, over the Lake Wells gold project, in Western Australia.
The two companies in 2018 struck an earn-in and joint venture (JV) agreement under which St Barbara will pay A$1.25-million in cash and will spend a minimum of A$1.75-million over an initial 12-month period.
After the first earn-in, St Barbara could elect to earn a 70% interest in the tenements by spending a further A$3.5-million on exploration over the following 24 months, and reimburse Australian Potash up to A$500 000 in costs previously incurred on exploration at Lake Wells.
Australian Potash will retain full ownership of all potash mineral rights at the Lake Wells project, while its 30% interest in the asset will be free carried until the completion of a bankable feasibility study.
St Barbara will now proceed to the second earn-in, Australian Potash said on Monday.
“Our strategic intent for the Lake Wells gold project was to partner with a capable and proven midtier gold company to help unlock the inherent value we believe this package of ground holds,” said Australian Potash MD and CEO Matt Shackleton.
“In St Barbara, we have that partner and progressing to the second earn-in period increases our confidence that future exploration success could add significant value to Australian Potash and its flagship Lake Wells sulphate of potash project.”