Gold: Rox helps Venus get gold project buy across the line, shares take off
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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.
Element 25 (ASX:E25) is selling its Green Dam project to big gold producer St Barbara (ASX:SBM) for $700,000 in cash and a 2 per cent royalty. The company says the sale will give it extra cash to help it complete a pre-feasibility study on the Butcherbird manganese project.
Silver Lake Resources (ASX:SLR) has invested $2.5m to take a 12 per cent stake in TSX-listed Sarama Resources. Sarama has ground in the prolific Hounde greenstone belt in South West Burkina Faso. Silver Lake says the Hounde greenstone belt hosts a number of operating mines and the southern portion of the belt has seen an increase in exploration activity.
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