Argent Minerals (ASX: ARD) has entered into an option agreement with gold explorer MinRex Resources (ASX: MRR) in relation to a joint venture interest in the Sunny Corner gold-silver-zinc-copper tenement (exploration licence EL5964) within New South Wales’ Lachlan Fold Belt.
Earlier this month, Argent signed a deal with Sunshine Reclamation Pty Ltd to acquire a 90% interest in Sunny Corner by way of a farm-in arrangement.
In 2019, Argent sold the historic tenement to Sunshine so it could conduct rehabilitation activities over the mining area.
The updated farm-in deal now allows Argent to explore areas of the licence not requiring environmental rehabilitation by spending $1.5 million over three years to earn 90%.
Argent has now granted MinRex an option to purchase that interest.
MinRex has exploration licences in WA’s Marble Bar and Gullewa regions and is currently focused on acquiring a portfolio of gold projects along the Lachlan Fold Belt.
Under the terms of today’s agreement, MinRex will pay Argent a $10,000 fee for a three-month exclusive option to review the Sunny Corner tenement with a view to acquiring Argent’s farm-in rights.
If MinRex exercises its option rights, Argent will receive a reimbursement of approximately $100,000 cash already paid to Sunshine under the farm-in deal.
It will also receive 80 million fully-paid ordinary shares in MinRex, issued in tranches on completion of pre-determined milestones.
These milestones include execution of the joint venture agreement on terms acceptable to MinRex and access being granted to Sunny Corner for drilling purposes, including the receipt of all government and landowner approvals, consents and authorisations.
The final tranche will be issued once MinRex acquires the legal title to Sunny Corner and a 90% beneficial interest in the tenement.
Argent managing director George Karageorge said the option agreement will give the company a strategic stake in MinRex and exposure to its Lachlan Fold gold project.
“This is a great position for us to be in,” he said.
“The option agreement potentially gives us exposure to a much larger portfolio of Lachlan Fold Belt projects and will hopefully lead to a major discovery at Sunny Corner.”