Planning To Expand Mining Centre
Rox Resources Limited (ASX: RXL) has exercised its option to acquire an additional 20% interest (for a total of a 70% interest) in the OYG Joint Venture at the historic Youanmi mining centre in Western Australia’s Mid-West.
Managing Director, Alex Passmore, said Rox’s acquisition of the additional 20% in the Youanmi asset is considered to be highly value accretive.
With 70% ownership of the OYG JV Rox is also entitled to assume management of the regional joint ventures (Youanmi, VMC and Currans) once the earn-in requirement for an initial interest in the Youanmi and VMC JV’s is met.
Rox acquired its initial interest in the project and regional joint ventures via the formation of a series of joint ventures with Venus in 2019.
The Youanmi Mining Centre has produced an estimated 667,000 oz of gold (at 5.47 g/t Au) since discovery in 1901 during three main periods: 1908 to 1921, 1937 to 1942, and 1987 to 1997. Most of the gold was produced from the Youanmi Mine with an estimated 96,000oz produced from Youangarra, Penny West, Columbia- Magenta, Currans and other minor prospects.
The current Resource Estimate at the Youanmi Gold Project is 2.4Mt at 2.97g/t Au for 1,190,600 ounces of gold.
Rox initially acquired a 50% interest (all minerals) in the OYG Joint Venture by providing funding of $2.8 million which was applied to the cash component of VMC’s option exercise to acquire the OYG Tenements. In addition, the company issued VMC $0.2 million in Rox shares.
Rox was also required to meet exploration expenditure of $2 million over the following two years (to June 2021) and to cover the costs of holding and managing the project. This $2 million commitment has been met and acknowledged by VMC.
After meeting the $2 million exploration expenditure, Rox had the option to move to 70% ownership of the OYG Joint Venture via the payment of $3 million to VMC.
Rox and Venus have now reached agreement that the $3 million payment will be met as to $2 million cash and $1 million in shares values.