Regis Resources is set to acquire tenements that form part of Stone Resources Australia’s North Brightstar project in Western Australia.
Regis will offer ASX-listed Stone Resources $10 million in company shares and a one per cent net smelter return royalty payable after the first 100,000 ounces of production.
The acquisition includes Stone Resources’ nine mining tenements and Ben Hur mineral resource, which consists 5.8 million tonnes at 1.6 grams per tonne gold for 290,000 ounces.
This has the potential to add further life to Regis’ Duketon operations, and is considered an ideal ore source for oxide open pit material while presenting potential future underground resource potential.
“The acquisition of this resource and tenement package is significant to us,” Regis managing director Jim Beyer said.
“The deal with will enable Regis to potentially add the Ben Hur deposit to the Duketon operation production portfolio.
“At the same time the exploration tenure acquired with the Ben Hur deposit has the potential for additional ounces to be discovered and added to our already substantial resource and reserve holdings.”
The proposed transaction is subject to Stone Resources shareholder and ministerial approvals.