St Barbara in $7m gold JV

Gold miner St Barbara has entered into a joint venture agreement with Australian Potash at the Lake Wells gold project near Laverton.

Under the agreement, St Barbara can earn a 70 per cent stake in the project by spending up to $7 million.

The gold miner will initially pay Australian Potash (APC) $1.3 million for entering the agreement, and a minimum exploration spend of $1.8 million during the first year.

St Barbara can earn a 70 per cent stake in the project by spending an additional $3.5 million over a two-year period, and reimbursing APC $500,000 in exploration costs.

APC will retain 100 per of all potash mineral rights at the project.

APC’s 30 per cent interest will be free-carried to the completion of a bankable feasibility study.

APC managing director Matt Shackleton said the company was focused on developing the Lake Wells sulphate of potash (SOP) project.

“The strategic intent of the board of APC is to focus on the completion of the definitive feasibility study into the development of the LakeWells SOP project,” he said.

“At the same time, however we have always been very aware of the inherent value of the Lake Wells gold project.

“We are looking forward to building our relationship with the St Barbara team.

“I am confident that we now have the right people, right companies and right project area in place to generate some significant success at what is one of the state’s very prospective and important mineral regions.”

St Barbara has made a number of investments in junior explorers over the past 12 months, including Duketon Mining and Peel Mining.

Shares in APC were up 4.23 per cent at 7.4 cents each at 3.40pm AEDT while St Barbara shares were off 1.89 per cent at $3.63 each.