St Barbara has entered into an earn-In and joint venture agreement with Australian Potash covering tenements at the Lake Wells Gold Project.
St Barbara will pay Australian Potash $1.25 million cash consideration to enter the Agreement, with a minimum exploration spend of $1.75 million during the initial 12 month Earn-In period.
After the initial Earn-In period, St Barbara can elect to earn a 70% interest in the Project by spending a further $3.5 million on exploration over 24 months, and reimburse Australian Potash up to $0.5m in costs previously spent on gold exploration at the Lake Wells Gold Project. In total, St Barbara’s expenditure to earn a 70% interest is $7.0m.
The Lake Wells Gold Project is located approximately 150km north-east of Laverton, Western Australia.
St Barbara’s investment in Australian Potash is aligned with its strategy of targeted investments in early to advanced stage exploration through earn-in arrangements, joint ventures or direct equity investments. This strategy includes St Barbara’s existing investment in Australian explorers Catalyst Metals, Duketon Mining, Peel Mining, and Prodigy Gold.
Source: Company Press Release