Western Yilgarn has entered into a farm-in and joint venture agreement with Bellpark Minerals, a subsidiary of Mitre Mining Corporation
The deal covers two tenements that augments the Ida Holmes Junction project with a continuous extension along the Holmes Dyke
WYX has the exclusive right to earn a 95% interest during a two-year period
Special Report: Western Yilgarn entered into a binding farm-in and joint venture agreement to augment the Ida Holmes Junction asset.
Western Yilgarn’s (ASX:WYX) Ida Holmes Junction project, 50km southwest of Gold Fields’ Agnew gold project, is centred on the intersection of the Holmes Dyke and the Mt Ida Fault in WA’s Yilgarn region where WYX recently reported successful Phase 4 auger drilling results increasing the overall project potential.
The Ida Holmes Junction Project area where WYX has now completed a phase 1 airborne electro magnetic survey has attracted attention from promising developers and majors alike due its underexplored nature and prospectivity for critical minerals such as lithium and rare earths.
Ida Holmes, in particular, is near two Tier 1 nickel projects operated by BHP including the Leinster and Mt Keith operations and is 60km north of Delta Lithium’s (ASX:DLI) 12.7Mt Mt Ida lithium project.
WYX earning a 95% interest in two tenements
WYX has now extended the Ida Holmes Junction asset after entering into a farm-in and joint venture agreement with Bellpark Minerals, a wholly owned subsidiary of Mitre Mining Corporation (ASX:MMC).
The term sheet allows WYX to earn a participating interest of 95% in E36/1080 and E29/1167 over a two-year period.
E36/1080 is a granted exploration licence that has had no modern exploration and is contiguous with existing WYX tenements.
Location of the new tenements in relation to the Ida Holmes Junction tenements. Pic: Western Yilgarn
It is located along the Mount Holmes Gabbro, an underexplored mafic dyke complex that is prospective for magmatic nickel-copper-PGE mineralisation.
The E29/1167 tenement, otherwise known as the ‘Mt Alexander’ lithium project, is also a granted licence but with identified pegmatite swarms located further south along the Ida Fault.
Strategic positioning
WYX chairman Peter Lewis says the highly prospective Mt Alexander project provides further strategic positioning in a well-regarded location.
“The E36/1080 is a strong strategic fit in the company’s Ida Holmes Junction project both in terms of its geological positioning and its shared border with our existing leases,” he says.
Key farm-in details
WYX has the exclusive right to earn a 95% interest in the tenements during a two-year period by sole funding $120,000 on exploration expenditure.
Bellpark (or its nominee) will receive 1 million ordinary shares in WYX escrowed for 12 months from the date of issue.
Upon completion of the farm-in, the parties will form an unincorporated joint venture with WYX as manager.
The parties may contribute their pro rata share of expenditure or be diluted according to standard dilution provisions unless Bellpark elects at that time to convert its participating interest to a 1.5% net smelt return (NSR) royalty on production of minerals from the tenements.
This article was developed in collaboration with Western Yilgarn, a Stockhead advertiser at the time of publishing.
This article does not constitute financial product advice. You should consider obtaining independent advice before making any financial decisions.
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