Gold Road Resources, a mid-tier gold mining company, has announced its decision to purchase a 9.9% stake in exploration firm Iceni Gold, marking the beginning of a significant exploration farm-in agreement valued at up to $44 million.
The binding deal focuses on a 154-kilometre stretch of Iceni’s wholly-owned tenements, located within the Guyer Gold Trend. This area is part of the larger 14 Mile Well Gold project, situated between Leonora and Laverton in Western Australia.
Under the terms of the agreement, approximately $35 million will be invested to further assess the gold discovery in the region, with an initial commitment of $5 million. A subsequent investment of $10 million within the next two years will trigger the formal establishment of a 50:50 joint venture between Gold Road and Iceni.
Gold Road has the option to increase its stake in the project to 70% upon the completion of pre-feasibility studies. Additionally, the company could acquire an extra 10% of the joint venture by paying $20 million to Iceni, should further developments warrant such a move.
This infusion of cash is expected to support Iceni’s ongoing exploration efforts as it seeks to identify a viable gold development project in the area. Gold Road, which is already a significant player in the sector, owns 50% of the Gruyere gold mine in partnership with global mining giant Gold Fields.
Iceni Gold’s chairman, Brian Rodan, expressed optimism about the deal, stating, “By entering into this strategic farm-in joint venture alliance with Gold Road Resources, a highly respected Tier 1 Gold Producer, I believe we have positioned Iceni Gold to potentially share in a major gold discovery at Guyer.”
Exploration activities are set to commence in January 2024. Gold Road’s shares were last traded at $2.03, while Iceni’s shares were valued at 6.5¢.
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