Ramelius signs farm-in with Clancy

Gold miner Ramelius Resources has signed an agreement to farm-in to Clancy Exploration’s Condobolin project in New South Wales.

Ramelius will have the right to earn an 80 per cent interest in the gold and base metal project by spending $2 million in exploration activities over a four-year term.

Following completion of the farm-in phase, Clancy will be in a position to make a decision to mine, at which point it will have the right to either contribute 20 per cent of costs or dilute its interest.

Ramelius will become project manager of Condobolin, however Clancy will be operator during the farm-in phase and will be entitled to a 10 per cent management fee.

Clancy managing director Gordon Barnes said the agreement would strengthen the company’s exploration program in NSW by providing the funding to test gold and base metal targets at the project.

“A review of the project completed late last year identified the requirement for a funding partner and we are looking forward to working with Ramelius to advance exploration at Condobolin,” Mr Barnes said.

The two companies will begin working together in the June quarter.

Ramelius shares were 3.5 per cent lower to 13.5 cents a share, while Clancy shares were unchanged at 1 cent each at 10:30am.