PERTH (miningweekly.com) – ASX-listed Vango Mining has exercised its option to gain a 51% interest in the Ned’s Creek gold project, in Western Australia, by spending A$5-million within a three-year period.
Vango and fellow-listed Lodestar Minerals in May struck a binding term sheet under which Vango secured an exclusive four-month option to enter into a farm-in and joint venture (JV) agreement over Ned’s Creek, which is located some 20 km south-east of Vango’s own Marymia gold project.
Vango paid an initial A$300 000 option fee, and will pay Lodestar a further A$200 000 in shares with the exercise of the option, in addition to the promised capital spend at Ned’s Creek.
Once Vango meets its earn-in commitment of A$5-million, Lodestar will have the option to remain a contributing JV partner, or the company could elect to revert to a 20% free carried interest.
Lodestar on Wednesday told its shareholders that a future development at Vango’s Marymia project would provide an obvious location where any deposits defined at Ned’s Creek could be transported and processed.