Brightstar Resources Ltd (ASX:BTR) has partnered with DevEx Resources Ltd to advance the non-gold portion of its Goongarrie Project in Western Australia, in particular nickel, under an earn-in agreement.
The move will ultimately see DevEx earning up to 75% of the non-gold mineral rights associated with the exploration licences E29/0966 and E29/0996 on Lake Goongarrie.
It is also part of Brightstar’s strategy to transition towards becoming a gold developer and producer by focusing on its Menzies and Laverton gold projects.
Nickel exploration
“This earn-in agreement provides an exciting opportunity to partner with DevEx that will see the targeted exploration of non-gold mineralisation, in particular nickel sulphides, under Lake Goongarrie,” Brightstar managing director Alex Rovira said.
“Brightstar will retain a meaningful stake in these tenements and exposure to any potential nickel discovery, as well as retaining the gold rights.
“As the company advances towards gold production from the Selkirk deposit at Menzies, Brightstar continues to look for opportunities to prioritise and progress exploration across our broader tenement portfolio.”
Goongarrie Project tenement map.
Agreement details
Under the terms of the deal, DevEx is required to undertake a SQUID electromagnetic survey within the next 12 months.
It may then spend not less than A$1 million within two years to earn a 51% interest in the non-gold mineral rights and a further 24% by spending at least A$2 million more within two years of earning the 51% interest.
If DevEx was to earn a 75% interest and either it or Brightstar chooses not to contribute to the joint venture costs in proportion to their respective interest, or chooses not to participate, then their interest will be diluted.
If either party’s interest reduces to 10% or less, it will convert to a 1% net smelter royalty for the sale of any non-gold minerals extracted, produced and sold from the project.