Javelin Minerals hands Eureka gold keys to MEGA, path to early production

• Javelin Minerals signs Right to Mine contract with MEGA Resources at Eureka
• MEGA will carry out the mining, project financing and haulage services at the project expected to kick off in Q2 next year
• The two companies will share profits equally from the Eureka mine plan, which will run for 12 months on a 78,677oz indicated resource
• JAV is set to receive $250,000/month cash prepayment on a 50% profit sharing plan from start of ore processing

Special report: Javelin Minerals is calling in the big guns at its Eureka gold project near Kalgoorlie, signing a Right to Mine agreement with MEGA Resources, the Aussie offshoot of Bain Global Resources.

With the start of mining pencilled in for Q2 next year, the operation is expected to churn product over 12 months on an indicated resource of 78,677oz gold.

Backed by Indian mining giant BGR Mining & Infra, with an order book of $18 billion under its belt, MEGA Resources will manage mining operations, haul ore to a third-party plant, provide geological and engineering expertise – and even chip in up to $25m to get the wheels turning at the asset.

Javelin Minerals (ASX:JAV) is set to receive $250,000 per month in cash prepayment with a 50% profit-sharing plan once ore processing starts.

The deal closely follows the release by JAV of a revised mining plan for Eureka, which showed improved metrics across the board.

Recoverable ounces rose by 15% to 39,000oz and grade increased by 32% to 1.98g/t.

This was achieved despite a 20% reduction in the ore to be mined, meaning less material but better returns.

It is expected to deliver substantial increases in margins and cashflow due to the strong Australian gold price, currently trading around the $5500 mark.

Under the agreement with MEGA profits from the current Eureka mine plan will be shared equally (50/50) but for any additional resources mined beyond that – either from within the project area or new projects, Javelin will receive 70% of profits.

Javelin will also receive monthly pre-payment instalments of $250,000 from its share of profits, starting from the first project revenues.

Mining is on track to kick off in the June quarter of 2026, pending final mine approvals and the signing of a binding Ore Purchase Agreement, which is well advanced.

$4.5m raise boosts exploration plans

Javelin has also locked in $4.5m via a two-tranche placement to support upcoming drilling programs at the Eureka and Coogee gold projects, scheduled to begin in Q4.

The placement was priced at 0.25c per share, with MEGA leading the raise through a $1m cornerstone investment.

The offer also attracted strong backing from key Goldfields industry participants, Western Australian gold financiers ($2m), and Javelin directors ($250,000), subject to shareholder approval.

To support its growth and upcoming exploration programs, Javelin has also welcomed Mark Cossom to the team as general manager – Exploration and Resources.

The former managing director of Gateway Mining (ASX:GML) provides guidance on gold exploration, resource development and economic project evaluation to several ASX-listed and private gold companies.

He will oversee the company’s exploration and resource development strategy, with a particular focus on fast-tracking Eureka.

“Pathway to production”

JAV executive chairman Brett Mitchell said the company was extremely pleased to partner with MEGA at Eureka.

“Their ability to provide a fully integrated mining and financing solution will enable Javelin to advance towards production in the most time efficient and co-ordinated manner,” he said.

“We are also pleased to welcome MEGA as a cornerstone in our current $4.5m placement, which is a strong validation of the Eureka gold project and Javelin’s corporate strategy and look forward to developing a strong long-term relationship with them.

“We are concurrently actively progressing discussions with third-party ore processors, the final step now in the pathway to production and revenues, following receipt of the necessary approvals.”

This article was developed in collaboration with Javelin Minerals, a Stockhead advertiser at the time of publishing.

This article does not constitute financial product advice. You should consider obtaining independent advice before making any financial decisions.