Astral Resources NL (ASX:AAR) has locked in a specialist mining services partner to fast-track early production from its Think Big gold deposit, part of the 100%-owned Feysville Gold Project near Kalgoorlie in Western Australia.
The company has signed a Letter of Intent (LOI) with Mineral Mining Services Pty Ltd (MMS) to form a fully funded development joint venture over the deposit — a move that provides Astral with a clear, low-risk pathway to near-term gold production and early cash flow.
Under the proposed structure, MMS will fund 100% of development costs at Think Big, recovering its investment from initial project revenues. Once costs are repaid, profits will be shared between the two companies, with MMS to receive 30–50% of project profits, depending on final terms.
The agreement includes a binding 90-day exclusivity period to allow both parties to negotiate and execute definitive joint venture documents.
Funding certainty and strategic alignment
Astral said the arrangement delivers a self-funded development route for Think Big, while preserving shareholder value and reducing future debt and equity needs for its flagship Mandilla Gold Project.
The Think Big deposit currently hosts a mineral resource estimate of 2.4 million tonnes at 1.1 g/t gold for 85,200 ounces, and was originally planned as a satellite feed source for Mandilla’s processing hub. Under the new partnership, those ounces will now be brought forward, positioning Think Big as an early-stage producer in Astral’s broader portfolio.
Managing director Marc Ducler said the deal represents a major de-risking step for Astral and its investors.
“The agreement with MMS provides a clear, fully funded pathway to establish early gold production from our Think Big Gold Project, providing an initial income stream for the company and potentially reducing the external funding requirement to develop our flagship Mandilla Gold Project,” Ducler said. “Partnering with an expert local mining services provider in Mineral Mining Services significantly de-risks the development and funding process for our shareholders, delivering early production and cash flow while allowing Astral to focus on delivering the broader Mandilla Project from a greatly strengthened financial base.”
Ducler also pointed to the benefits to Astral of the proposed joint venture’s structure.
“By having MMS fund all development costs through to production, we can advance Think Big without shareholder dilution while retaining significant exposure to the project’s upside,” he said. “The profit-sharing arrangement ensures both parties are fully aligned to deliver the project as efficiently and profitably as possible.”
Early production on track for 2026
Subject to final approvals and execution of binding agreements, the joint venture aims to commence mining at Think Big in the third quarter of 2026, aligning with the targeted final investment decision for Mandilla.
MMS chief executive Robert Ryan said the company was confident in the project’s near-term potential.
“We are excited to partner with Astral Resources on the development of Think Big,” he said. “Our initial review of the project highlights the exceptional work completed by the Astral team, which gives us great confidence in the joint venture’s potential to be highly profitable for both companies.”
Astral and MMS will now work in good faith to finalise binding agreements within the 90-day exclusivity period, paving the way for MMS to commence a scoping study and development plan as the basis for the Think Big development.
“We believe this partnership will not only deliver strong returns but will also support Astral’s long-term vision for the development of a significantly larger project at Mandilla by making the transition to operating mining company at the same time as we finalise the FID for the overall project development,” Ducler said.