Gold: Rox helps Venus get gold project buy across the line, shares take off

Venus Metals (ASX:VMC) has partnered with Rox Resources (ASX:RXL) to help it close its acquisition of the Youanmi gold project in Western Australia.

Investors liked the news, sending Rox shares up 37.5 per cent to 1.1c and Venus shares up nearly 12 per cent to 19c.

Venus struck a deal in May last year that gave it an option to buy the Youanmi project for $5.5m via a combination of shares and cash.

Under this new deal, Rox can earn an initial 50 per cent stake by paying Venus $2.5m in cash and issuing $200,000 worth of shares.

Rox will also stump up $2m for exploration on the Youanmi project.

“Joining forces with Rox Resources at Youanmi is a great deal for Venus, in regard to the way in which the company has managed to arrange the settlement of the Youanmi gold mine acquisition, which is with minimal dilution to VMC shareholders coupled with mitigating risk,” Venus managing director Matthew Hogan said.

Rox has the option to increase its stake in the project by a further 20 per cent at a cost of $3m in either cash or a combination of cash and shares.

Venus has been contacted for comment.

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In other gold news:

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Kirkland Lake Gold (ASX:KLA) has reported a 57 per cent increase in gold production for the first quarter of 2019 thanks to record output from its Fosterville and Macassa mines. All up the company produced 231,879 ounces from four mines.

Ramelius Resources (ASX:RMS) says it is on track to meet its FY19 production target of 190,000 to 210,000 ounces. The company produced 45,286 ounces of gold in the March quarter from its Western Australian operations. That takes year-to-date production to 149,337 ounces.

Chesser Resources’ (ASX:CHZ) latest drilling effort has delivered high-grade gold of up to 16.1 grams per tonne (g/t). The junior explorer was drilling a 2.5km-long by 500m-wide target at its flagship Diamba Sud project in Senegal.