Killi Resources has entered into an earn-in joint venture (JV) agreement with a subsidiary of Gold Fields, paving the way for potential investment of up to A$13m ($8.59m) to acquire an 85% stake in the West Tanami Project located in Western Australia (WA).
Exploring the West Tanami Project
Spanning 1,600km² in the Kimberley region of WA, the West Tanami Project boasts a 100km strike of primary gold mineralising structures, making it an attractive exploration target for Gold Fields.
Progressive Investment by Gold Fields
Gold Fields has the option to earn a 60% interest in the project by committing to spend A$5m over three years, with a minimum of A$2m to be invested in the initial two years. Upon meeting this requirement, the company can further increase its stake to 85% by injecting an additional A$8m within seven years.
Benefits of the JV Agreement
During the earn-in phase, Gold Fields will manage and fund the exploration activities at the West Tanami Project. In the event that Killi’s interest is diluted to 10%, the company can choose to maintain its stake by contributing to expenses or opt for a 1% net smelter royalty (NSR) over the project.
Strategic Investment and Partnership
In addition to the JV agreement, Gold Fields has agreed to purchase shares in Killi Resources at A$0.038 per share, raising A$500,000 and demonstrating its commitment to the project’s exploration and development.
CEO’s Insight
Killi CEO Kathryn Cutler highlighted the strategic importance of the partnership, stating that it grants access to expertise and funding for long-term progress at the West Tanami Project. She also emphasized the opportunity for focused exploration at the Mt Rawdon West Project to uncover a new copper-gold system near Bundaberg in 2024.
“Gold Fields to earn stake in Killi Resources’ WA gold project” was originally created and published by Mining Technology, a GlobalData owned brand.
