Mila Resources PLC (LSE:MILA) has confirmed that the company is in discussions with regard to a transaction for the Kathleen Valley project in Western Australia relating to a joint venture partner.
In a brief statement, released after the market close on Monday in relation to its share price movement, the post-discovery gold exploration accelerator said the transaction is the subject of further discussion and agreement with its partners in the licence, therefore, there can be no certainty that any transaction will be completed.
The company said it will update the market in due course.
In its interim results statement last Friday, 31 March 2023, Mila said it is continuing to evaluate the geological data from Kathleen Valley and is refining its exploration model.
Mila re-listed on the London Stock Exchange in November 2021 following the acquisition of 30% of Kathleen Valley with the option to acquire an additional 50% interest in two further tranches.
Having raised £696,000 last October and £212,000 in November, the interim results showed the company had cash and cash equivalents of £832,275 at the end of December 2022, having cut losses to £205,404 from £760,806 a year ago.
Following encouraging Phase 1 exploration and drilling but a Phase 2 that did not meet expectations, executive chairman Mark Stephenson said the company is “spending the funds prudently and do not believe it appropriate to continue drilling without mitigating as much exploration risk as possible.
“Once we have worked through the options and the budget available to us, Mila will update the market with its next programme at the project," he said.
In early morning trading on Tuesday, Mila shares were another 13.6% higher at 1.25p, having closed 37.5% higher at 1.10p on Monday.