Javelin Minerals Finalises $25m Financing Deal to Advance Eureka Gold Project Development
Javelin Minerals (ASX: JAV) has added significant impetus to the development of its Eureka gold project near Kalgoorlie with the signing of a right-to-mine agreement with contractor MEGA Resources.
Under the agreement, MEGA will carry out mining and haulage to a third-party processing plant, as well as provide geological and engineering services and fund up to $25 million in development and working capital.
The MEGA deal comes after Javelin unveiled a revised Eureka mining plan in early August based on a 15% increase in indicated resource results with total recoverable ounces now estimated at 39,000 ounces.
Major International Backing
MEGA is the Australian subsidiary of the BGR Mining and Infra group, one of India’s largest mining contractors with an order book exceeding $18 billion.
The agreement initially covers the north and south open pits at Eureka, with the two parties to share profits 50:50 and Javelin to receive pre-payment instalments of $250,000 per month from first project revenues.
Javelin has based the mine plan for those two pits on indicated resources of approximately 698,887 tonnes at 1.98 grams per tonne.
The company is currently in discussions with third-party ore processors in the lead-up to production at Eureka, which it expects to commence in 2026.
Cornerstone Investment
Javelin has also announced it had received firm commitments to raise approximately $4.5m through a placement to professional and sophisticated investors.
MEGA is subscribing for $1m worth of shares in the placement, proceeds of which will support the upcoming exploration drilling at Eureka to delineate resource extensions to the mineralised gold zones below the Eureka pits.
The company will also use the new capital on exploration drilling at the Coogee gold project, and the identification and review of new near-term gold production assets and high impact gold exploration projects in the WA goldfields.
Comprehensive Mining Solutions
Executive chair Brett Mitchell said MEGA would provide Javelin with turnkey mining solutions and important expertise in mine planning, engineering, and operations.
“Their ability to provide a fully integrated mining and financing solution will enable Javelin to advance towards production in the most time efficient and co-ordinated manner,” Mr Mitchell said.
“We are also pleased to welcome MEGA as a cornerstone investor, which is a strong validation of the Eureka gold project and Javelin’s corporate strategy, and look forward to developing a strong long-term partnership with them.”