Native Mineral Resources enters joint venture with Citigold
- Native Mineral Resources signed a joint venture agreement with Citigold over four mining leases.
- Agreed project costs will be fully recovered before remaining surplus profits are split 50:50 between the two companies.
- The agreement gives Native Mineral Resources exclusive rights to drill and potentially process material at its nearby Blackjack facility.
Native Mineral Resources (ASX:NMR) has executed a joint venture agreement with Citigold (ASX:CTO) to gain exclusive drilling rights across four mining leases covering 128 hectares in Queensland.
The deal allows Native Mineral Resources to evaluate potential ore deposits located approximately 2km north of its existing Blackjack processing operations.
"The Stockholm joint venture provides NMR with a staged opportunity to assess additional mineralised material close to our Charters Towers operations without acquiring the tenements," said Native Mineral Resources Managing Director and CEO Blake Cannavo.
Under the agreed commercial terms, Native Mineral Resources will fund exploration and receive an eight per cent margin on specified cost categories prior to sharing surplus proceeds equally with Citigold.
Native Mineral Resources will maintain full operational control of all drilling and potential future mining activities across the four leases.
Following the announcement, the Native Mineral Resources share price was unchanged at $0.071.
The agreement allows Citigold to remain the registered tenement holder while outsourcing exploration and processing capabilities to Native Mineral Resources.
