Gold Road progresses Yamarna JV

Japanese miner Sumitomo Metal Mining Oceania has met its funding commitment conditions to acquire a further 20 per cent stake in Gold Road Resources’ South Yamarna joint venture project.

Under a 2013 agreement between the two companies, Sumitomo was to spend $8 million by the end of this year to acquire a 50 per cent interest in the gold project, which lies in the Yamarna Belt in Western Australia.

Last year, the Japanese miner acquired an initial 30 per cent stake by spending $5 million in exploration work at the project.

As of last month, Sumitomo had spent a further $3 million and its stake had formally increased to 50 per cent.

Following the change in ownership structure, Gold Road will continue as manager of the Yamarna joint venture project while assuming chairmanship of a joint venture committee.

The parties will have the right to either contribute or not contribute to exploration spending at the site.

If a party chooses not to contribute, its stake may dilute if another party contributes.

Gold Road chairman Ian Murray said having Sumitomo as a partner had allowed the company to accelerate its evaluation of the Yamarna tenements that wouldn’t have been possible if the Perth-based company was operating alone.

“We welcome Sumitomo’s progression to 50 per cent ownership of the joint venture and look forward to continuing to work together to unlock the considerable potential of this underexplored gold belt,” Mr Murray said.