East Star Resources surged 29% to 2.58p on Thursday after striking what it described as a “transformational” joint venture with Endeavour Mining, giving the junior explorer a well-funded partner to accelerate gold exploration on two underexplored mineral belts in Kazakhstan.
Under the binding earn-in agreement, Endeavour can acquire up to 80% of a newly formed joint venture company through staged investment. It will earn 51% by spending $5 million within the first two years, rising to 70% with an additional $20 million over the next three. A final 10% would be secured by fully funding and completing a NI 43-101 pre-feasibility study.
East Star will retain 20% once the earn-in is complete and will manage the joint venture at the outset, receiving remuneration for its role. Endeavour will also make milestone payments, verified by an independent Qualified Person, for any maiden resource and the subsequent pre-feasibility study.
Chief executive Alex Walker said the deal validates East Star’s exploration progress and brings in a “world-class partner”, noting Endeavour’s record of building five mines in 11 years. He said the agreement “provides a clear pathway to unlock the full potential” of the company’s gold strategy in Kazakhstan.
East Star will hold an investor webinar on 18 November to outline the agreement in more detail.