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Venus completes last piece of Gold Mine acquisition puzzle
3 minute read
Venus Metals (ASX:VMC) has completed settlement of the Youanmi Gold Mine option.
“We are very pleased to complete settlement of the Youanmi Gold Mine option,” said Venus metals Managing Director Matthew Hogan.
“The Gold Mine itself, with its substantial gold resources and infrastructure, was the last major piece needed to complete our tenement consolidation over the highly prospective Youanmi Greenstone belt.”
Venus has been issued 25 million ordinary fully paid shares in joint venture (JV) partner Rox Resources (ASX:ROX), who will also pay VMC $2,550,000.
The completion of the acquisition of the Youanmi Gold Mine sees the formation of four separate joint ventures between Venus and Rox.
The first of these is the Youanmi Gold Mine joint venture (OYG). Both parties will take a 50% stake, with Rox to spend $2 million on drilling and relevant ground exploration. To complete its ownership obligations, Rox will also take responsibility for two years’ worth of holding costs including rents and rates.
Rox has the option to increase its stake by a further 20% in the OYG JV before 30 June, 2021 for a total sum of $3 million. Details of which can be found in today’s announcement.
Initial RC drilling at the OYG JV of circa 14,500 metres will begin in early July, with multiple targets already identified to confirm and expand the near surface oxide resources within the OYG mining leases.
Settlement of the acquisition initiates the formation of three further regional exploration Joint Ventures known as:
- Venus Joint Venture
- Youanmi Joint Venture
- Currans Find Joint Venture
VMC currently own 100% of the Venus JV, with Rox earning a 50% gold rights interest only in the tenements highlighted in blue on the map below:
Following the completion of its 50% interest earn-in, Venus and Rox will contribute equally.
There is no option for Rox to increase its ownership in this JV and Venus remains the manager.
VMC’s first task in this particular JV will be to oversee RC and air core drilling, which is planned along strike from the Spectrum Penny West North discovery and at the Golden Victoria prospect. Drilling here will also commence in July.
Venus has a 90% holding of the Youanmi JV, with Rox to earn a 45% in gold rights interest in the tenements highlighted in green above.
Rox will contribute $200,000 on exploration and once it has earnt its interest, the companies will contribute equally. There is no option for Rox to increase its stake in the JV.
Drilling targets are currently being evaluated, with Venus again acting as the manager of the project.
Currans Find JV
Venus and Rox each have a contributing 45% interest in the Currans Find JV on the tenements highlighted in yellow on the map above.
Additional RC drilling is scheduled for July to follow up on these high-grade results. Venus is Manager of the project.
“With our new joint venture partner in place, the necessary drilling and exploration to advance the project is set for the next two years,” Hogan said.