PERTH (miningweekly.com) – Gold miner Evolution Mining has struck an earn-in agreement with fellow-listed Andromeda Metals over its Drummond gold exploration project, in Queensland.
Under the terms of the agreement, Evolution would earn an initial 51% interest in the project by making a cash payment of A$300 000 to Andromeda and spending A$2-million on exploration over a two-year period.
Evolution could earn an additional 29% interest in the project by making a further A$200 000 cash payment, and by spending an additional A$4-million on exploration in the subsequent two years.
On completion of Evolution’s funding commitments, either party could elect not to contribute to a proposed joint venture (JV) programme and budget, in which case their interest in the JV would be reduced in accordance with a standard industry dilution formula.
If either party diluted to less than a 10% interest in the JV, that party’s interest will be converted into a 2% net smelter return royalty, capped at a maximum of A$10-million.
Evolution VP for discovery Glen Masterman said that the Drummond project was an exciting opportunity to leverage the company’s expertise in epithermal gold deposits on a technically compelling project close to the Mount Carlton operation.
The Drummond project covers some 520 km2 and is 50 km south-west of Evolution’s Mount Carlton operation.