Australian mineral explorer Venus Metals (ASX: VMC) has joined forces with fellow junior Rox Resources (ASX: RXL) in what it describes as a “transformational deal” to unlock the potential of the historic 1.2-million-ounce Youanmi gold mine in Western Australia.
The companies today announced the signing of a binding term sheet, which will enable Venus to settle on its purchase of the mine and form three joint ventures with Rox to undertake aggressive exploration of the project area.
In May last year, Venus made an option-to-purchase deal with Youanmi owner Oz Youanmi Pty Ltd to buy up the gold mine plus associated infrastructure including the mine village.
Under this latest deal, Rox will enter into a joint venture with Venus to acquire a 50% interest in the mine with the ability to bump its stake up to 70%. It will also take over as the manager of the project.