Metalicity Limited (ASX: MCT) has executed a number of further farm-in agreements to expand its holding within Western Australia’s Eastern Goldfields region at its Kookynie and Yundamindra Gold Projects.
Metalicity managing director Jason Livingstone said the deals are a major step forward along with its recent farm-in agreement with Nex Metals Exploration Ltd. Metalicity now has access to 11,601.6 ha of prolific Eastern Goldfields ground.
“The farm in arrangements we have entered into ensures money is spent on the ground. We are seeing opportunities in the Kookynie and Yundamindra areas and we are taking action. I would like to thank Paddick, Paris, Nex Metals and Simon Byrne for negotiating with us in good faith, and I look forward to exploring and developing these assets to realise value for Metalicity shareholders,” Mr Livingstone said.
“The farm in agreements are designed to ensure that the acquisition is driven by spending money into the ground and giving the vendors an opportunity to realise the tenements value through a retained royalty. I am delighted that the vendors have negotiated with Metalicity and entered into these agreements allowing us access to ground in such a fantastic area.”
Farm in agreements
In May 2019, the company announced a farm-in with Nex Metals Explorations Ltd for a strategic entry Into Eastern Goldfields Gold Projects.
During the due diligence period for that farm-in agreement reached between Metalicity and Nex Metals, Nex Metals saw an opportunity to peg strategic prospecting licenses within the Kookynie and Yundamindra Projects. Through a subsequent “Deed of Acknowledgement” between Metalicity and Nex Metals, the pegged tenements are now folded into the overall farm-in agreement that allows us to make a concerted effort to effectively explore this ground.
No alteration to an overall premise of $5 million of expenditure over five years to earn 51% has been made folding these tenements into the schedule subject to the earn-in conditions.
The agreements are for licences P40/1499, P40/1500, P40/1501, P39/6126 and P39/6127.