Ramelius Resources has signed its second farm-in and joint venture agreement in Nevada, USA, after securing a deal with Newmont Mining over its South Monitor gold project.
The project is located 40km southeast of Tonopah in Nevada and Ramelius believes it has deeper gold grade target opportunities that untested at depth. This will be the focus of its exploration efforts.
Under the joint venture agreement, Ramelius has the right to earn an initial 51 per cent interest in the projext by sole funding $US4 million ($5 million) in exploration within four years. Ramelius can also earn up to 80 per cent by spending $8 million ($10 million) over eight years.
Newmont has the right to claw back to 70 per cent equity.
After a decision to mine or after Newmont’s decision to claw back, both parties will fund all future joint venture expenditure depending on the participating interests.
Ramelius will manage all aspects of the South Monitor exploration during the initial farm-in as long as it holds a majority stake in the project.
Last quarter, Ramelius entered a farm-in and joint venture agreement with Renaissance Gold over its Jupiter gold project 120km east of Tonopah. Under the deal, Ramelius can earn a 75 per cent interest in the project by spending $US3 million ($3.7 million) within five years.