Local gold miner Doray Minerals is seeking to expand its exploration portfolio through a $10 million joint venture deal with Rox Resources.
Doray has announced plans to acquire up to a 75 per cent stake in Rox’s Mount Fisher gold project in the Goldfields by funding $10 million in exploration activities over five years.
Doray managing director Allan Kelly said Mt Fisher was an attractive exploration opportunity for the company.
“We believe, given the geology, structural setting and results achieved today, that there is the potential for discovery of a significant gold deposit within the project area and we look forward to working with Rox to advance the project,” he said.
Rox managing director Ian Mulholland said the company was pleased that Doray had chosen to partner up to accelerate the search for a significant gold deposit at the project.
“This joint venture vindicates our view of the prospectively of the tenements for gold and we look forward to a long and fruitful relationship with Doray,” he said.
Under the terms of the deal, Doray will be required to spend an initial $5 million over the first three years to earn a 51 per cent stake in the project.
It then has the option to boost its stake to 75 per cent by spending a further $5 million over two years.
The joint venture arrangement excludes Rox’s nickel project tenements at Mt Fisher.
Doray shares were 2.5 per cent higher to $1 each at 10:15am, while Rox shares were unchanged at 1.3 cents each.