Metalicity to accelerate development of Kookynie, Yundamindra gold projects after increasing stake to 80pc
Metalicity has increased its interest in the highly prospective Kookynie and Yundamindra gold joint ventures from effectively 65.6% (51% direct and 14.6% indirect interest) to 80% direct interest after settling all disputes with partner Nex Metals Exploration.
Kookynie, about 180km north of Kalgoorlie, is a historical gold mining camp with the Cosmopolitan mine producing 360,000 ounces of the precious metal between 1895 and 1922.
Other deposits such as McTavish, Leipold, Champion and Altona were also highly lucrative back in the day.
Metalicity (ASX:MCT) notes that drilling and exploration carried out by the JV over the past four years have further enhanced the prospectivity of the Kookynie project with drilling confirming that the McTavish and Leipold deposits remain open in one or more directions.
Notable assays from drilling include:
Yundamindra also has historical high-grade gold production of 74,000t grading 19.3g/t, or 45,000oz of contained gold.
Drilling at this project has returned results such as:
The Yundamindra project is currently under plaint with the joint venture currently awaiting the decision of the Wardens Court.
In a bid to secure complete control over the two projects, Metalicity in 2021 attempted to acquire Nex Metals through an offer of 4.81 shares for every Nex share on issue, though this did not make sufficient headway.
Metalicity will now increase its stake in the two JVs to 80% under a terms sheet reached with Nex Metals (ASX:NME), which will contribute to its share of future expenditure to retain its 20% holding.
Nex will acquire full control of four non-core prospecting licences as well as the Kookynie tailing rights under formal terms.
Both parties will also settle all disputes relating to the JV as well as all legal action.
As part of the terms sheet, Metalicity will cancel all the shares it owns in Nex Metals and forgive all outstanding cash calls owed by Nex.
In return, Nex will forgive all legal costs owed by Metalicity.
“This is a positive step forward for both parties, and it will enable Metalicity to accelerate the development of the highly prospective and high grade Kookynie and Yundamindra projects, and importantly it allows both parties to move on and focus on their own business activities, now that the litigation has been settled,” Metalicity managing director Justin Barton said.
This article was developed in collaboration with Metalicity, 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.