Japanese firm boosts stake in Gold Road JV

Japanese miner Sumitomo Metal Mining Oceania has formally acquired a 30 per cent stake in Gold Road Resources’ South Yamarna joint venture project.

A milestone ceremony was held at Parliament House today to formally recognise Sumitomo’s stake increase, where Gold Road chairman Ian Murray and Sumitomo managing director Hitoshi Ito signed a formal statement acknowledging the earn-in milestone.

MLA member for Kalgoorlie Wendy Duncan presided over the formal signing.

Under the terms of the agreement, which the two companies entered into in 2013, Sumitomo was required to spend $5 million in exploration activities at the project to gain the 30 per cent interest.

Sumitomo can still acquire a further 20 per cent stake by spending $3 million more in exploration by the end of 2016.

The South Yamarna tenements cover a 2,900 square kilometre area in the Yamarna Belt.

Earlier this month, base metals miner Independence Group emerged as the buyer of a small stake in Gold Road, after a Canadian company sold down its holding.

Gold Road's flagship Yamarna Belt tenements are in close proximity to Independence's Tropicana gold deposit.

Gold Road shares closed 4.5 per cent higher to 46.5 cents each.