Brightstar Resources Ltd has taken steps to streamline its portfolio by divesting the non-core Goongarrie Gold Project in WA after executing a binding Term Sheet with Cazaly Resources Ltd.
This has seen Cazaly granted an option, exercisable within 90 days, to elect to earn up to an 80% interest in the Goongarrie Project by sole funding exploration expenditure of up to $3 million.
Upon Cazaly earning an interest in the Goongarrie Project, Brightstar and Cazaly will move to form a joint venture to explore and potentially develop the project.
This earn-in allows Brightstar to prioritise operational and development activities, with definitive feasibility study workstreams advancing and current mining operations at Second Fortune complemented by start-up works at the Fish underground project.
Exposure retained
Brightstar’s managing director Alex Rovira said: “With our focus on development and mining operations across the broader Eastern Goldfields and Murchison regions, we are delighted to have attracted a quality partner in Cazaly to explore the Lake Goongarrie area in greater detail, while retaining exposure and upside to exploration success with the joint venture.
"Our focus in the general Menzies area is on the Lady Shenton System where we are defining a large open pit mining complex as part of our DFS, whilst we continue to explore and assess other deposits such as Yunndaga and the Link Zone for future mining opportunities to increase our operational footprint in the Menzies area.”
Menzies & Lake Goongarrie tenure.
The Goongarrie Gold Project is well placed, being about 30 kilometres south of Menzies and accessed via the sealed Goldfields Highway.
Brightstar’s exploration strategy remains focused on improving and growing existing mineral resources at projects with granted mining leases and near-term commercialisation pathways, such as the Sandstone, Menzies and broader Laverton project areas.
Earn-in terms
Terms of the earn-in with Cazaly are:
- Upon exercising the option, Cazaly to spend $1 million on expenditure over an initial 12-month period to earn a 25% interest;
- Cazaly to spend an additional $1 million on expenditure over a further 18-month period to earn an additional 26% interest (aggregate 51% interest); and
- Cazaly to spend an additional $1 million on expenditure over a further 18-month period to earn an additional 29% interest (aggregate 80% interest).
The exercise of the option by Cazaly is subject to the satisfaction of certain conditions precedent, including due diligence on the Goongarrie Project by Cazaly, the tenements being in good standing and certain deeds of assignment being entered into with parties that have rights in respect of the project.