Venus Metals has received $2.55 million from Rox Resources and has been issued 25 million ordinary fully paid shares.
Venus has exercised two options to complete the acquisition of the Youanmi Gold Mine.
After the settlement of the acquisition of Youanmi, four separate JVs have been formally formed in various ways between Venus Metals and Rox Resources.
Venus Metals managing director Matthew Hogan said: “We are very pleased to complete settlement of the Youanmi Gold Mine option.
“The gold mine itself with its substantial gold resources and infrastructure was the last major piece needed to complete our tenement consolidation over the Youanmi greenstone belt.
“With our new joint venture partner in place the necessary drilling and exploration to advance the project is set for the next two years.”
Rox has the obligation to spend $2 million on drilling and ground exploration expenditure within two years to complete its 50% ownernship.
The company can increase its stake in the OYG JV on or before June 30, 2021, after the obligation to spend has been met by acquiring an additional 20% from Venus for a further payment of $3 million in cash.
A 14,500-metre reverse circulation drilling program is expected to begin in early July with multiple targets having been identified to confirm and expand near-surface oxide resources.
Settlement of the Youanmi Gold Mine acquisition also initiates the formal formation of three regional exploration joint ventures - the Venus JV, Youanmi JV and Currans Find JV.
In the Youanmi and Currans Find JVs Rox is earning a 45% gold rights interest on tenements with Venus being manager of the two projects.
Once Rox has earned its 45% interest, Venus and Rox contribute equally to the Youanmi JV and there is no option to increase the stake.