Evolution Mining has agreed to spend $18 million on exploration over the next five years on West Perth-based Musgrave Minerals’ Cue gold project in the Murchison region.
The $18 million expenditure via the earn-in joint venture deal will give Evolution a 75 per cent stake in the project, with $4 million to be spent during the first two years.
In addition to the exploration outlay, the Jake Klein-led miner has agreed to subscribe to $1.5 million-worth of Musgrave shares at 8.1 cents each, which gives Evolution a 4.59 per cent interest in Musgrave.
This price is line with its 30-day volume-weighted average price.
Musgrave managing director Rob Waugh said the company was pleased to partner with Evolution, with the joint venture expected to fast-track exploration at Cue.
“We look forward to leveraging Evolution’s extensive technical knowledge and financial resources with our in-house expertise to accelerate potential gold discoveries at Cue,” he said.
Musgrave bought the Cue project from Silver Lake Resources in August 2017.
Shares in Musgrave were down 2.4 per cent to trade at 8.1 cents at 12.30pm AEST.