Gold explorer Catalyst Metals has entered a farm-in and joint venture agreement with major shareholder St Barbara to explore its Drummartin project in Victoria.
Gold explorer Catalyst Metals has entered a farm-in and joint venture agreement with major shareholder St Barbara to explore its Drummartin project in Victoria.
Under the agreement, St Barbara can acquire up to 50 per cent interest in the project by funding at least $3.5 million in exploration within four years.
The minimum expenditure required is $1 million within two years, after which St Barbara may withdraw from the joint venture.
Catalyst said its subsidiary Kite Operations will be the operator of the project and will hold responsibility for on-ground local operations, primarily managed from Bendigo.
The Drummartin project comprises 648 square kilometres with limited previous exploration, Catalyst said.
As part of the earn-in agreement, St Barbara will refund $150,000 of exploration expenditure incurred by Catalyst since January 1 2019.
Catalyst technical director Bruce Kay said the joint venture is a continuation of the company’s strategy over the last six years of sharing exploration risk.
“We are pleased to now have St Barbara as both a joint venture partner as well as a major shareholder, and believe that they will bring new technical skills to our exploration effort,” Mr Kay said.
Also announcing a farm-in and joint venture agreement was Hammer Metals, signing with Japan Oil Gas and Metals National Corporation (JOGMEC) to explore four areas at its Mount Isa gold project in Queensland.
Hammer said it would manage exploration until JOGMEC earned a 60 per cent interest in the project by spending $6 million within five years.
A minimum of $1 million in expenditure is required by March 31.
Hammer managing director Dan Thomas said increased exploration funding would allow the company a focused and accelerated exploration program at Mount Isa.
“The ability for Hammer to attract a quality partner such as JOGMEC supports Hammer’s approach in the identification of early stage exploration targets and prospect generation,” Mr Thomas said.
“We aim to start (exploration) immediately.”
Shares in Catalyst Metals were up 4 per cent to trade at $2.60 per share, and shares in Hammer Metals were also up 4 per cent to trade at 2.6 cents per share, as at 4:10pm AEDT.