Kingwest Resources Ltd (ASX:KWR) is continuing discussions with FMR Investments Pty Ltd in relation to a profit share joint venture (JV) which may lead to a binding agreement being signed.
The two companies entered into a term sheet for the formation of a 40% KWR/60% FMR profit share JV to commence mining at Kingwest’s first high-grade underground mineral resource estimate at Yunndaga, located six kilometres south of the town of Menzies, within the Menzies Gold Project in Western Australia.
This term sheet consisted of a number of conditions, including due diligence and a due date of November 30, 2021, for the formal joint venture agreement.
While these terms have not yet been met, and the initial due date has passed, KWR still intends to continue discussions with FMR in an effort to produce a profit share JV.
Kingwest Resources CEO Ed Turner said: “Whilst our focus in on the very exciting potential we continue seeing at Goongarrie, we remain committed to pursuing opportunities to unlock the commercial potential of the Menzies Gold Project.”
About Kingwest Resources
Kingwest Resources is a mining and exploration company engaged in advancing its gold projects into production as well as discovering new gold resources in its highly prospective projects in the Eastern Goldfields region of Western Australia.
The flagship Menzies Gold Project (MGP) is one of Western Australia’s major historical goldfields and covers a contiguous land package over a strike length of more than 15 kilometres.
Within the MGP a series of structurally controlled high-grade gold deposits have been historically mined and display extensive exploration potential for high-grade extensions. Modern exploration since closure over 20 years ago has been limited.
The MGP has recorded historical production of 643,200 ounces at 22.5 g/t gold from underground between 1895 and 1943 plus 145,000 ounces at 2.6 g/t open cut between 1995 and 1999, for a total of 787,200 ounces at 18.9 g/t.