What are the key details of the agreement between Reach Resources (ASX:RR1) and Andel Resources?

Reach Resources has signed a binding option agreement granting Andel Resources exclusive rights to negotiate a formal Right to Mine and Milling (RTMM) Agreement for the M59/769 "Blue Heaven" tenement.

How will profits be shared under the Reach Resources (ASX:RR1) deal?

Net project profits from the Murchison South Gold Project venture will be split evenly on a 50/50 basis between Reach Resources and Andel Resources. This profit-share model is calculated on an at-cost and open-book framework.

What immediate funding does Reach Resources (ASX:RR1) receive from this transaction?

Reach Resources secures an immediate, non-refundable option fee of $2 million from Andel Resources. Additionally, Andel has committed to a strategic equity investment, subscribing to approximately 9.4% of Reach’s issued capital at $0.009 per share, totaling roughly $900,000.

How does the equity placement compare to the current Reach Resources (ASX:RR1) share price?

Andel Resources is buying its 9.4% equity stake in Reach Resources at an issue price of $0.009 per share. Given that Reach Resources’ share price was trading at $0.013 at the time of reporting, this placement is priced at a discount of approximately 30.7% to the market price.

Where will the gold from the Murchison South Project be processed?

The mined gold ore will be processed at the Kirkalocka Mill, which is located approximately 75 kilometres from the Murchison South Project site. The mill is operated by Gylden Resources, a subsidiary of Andel Resources.

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Reach Resources secures full Murchison Gold funding

Written by Liezl GambePublished May. 18 2026Last Updated May. 18 2026

Reach Resources (ASX:RR1) has executed a landmark binding option agreement with Andel Resources, securing full funding to production for its 80,000oz Murchison South Gold Project in Western Australia.

The exclusive transaction grants Andel a right to negotiate a formal right to mine and milling agreement, specifically targeting the M59/769 ‘Blue Heaven’ tenement.

Under the terms of the strategic partnership, net project profits will be split on an equal 50/50 basis, calculated on an at-cost and open-book framework.

Andel will eliminate upstream financial barriers by fully funding all upfront pre-mining operations, mining, haulage, and processing costs, with expenditure later recouped directly from gold revenues.

Ore processing will be executed at the Kirkalocka Mill—operated by Andel's subsidiary, Gylden Resources—which is situated approximately 75km from the project site.

The deal injects immediate capital into Reach, with a $2 million non-refundable option fee enabling the explorer to fast-track critical regulatory approvals and project development.

Andel has agreed to subscribe to approximately 9.4% of Reach’s issued capital at $0.009 per share, totalling roughly $900,000.

While the RTMM Agreement currently focuses on M59/769, Reach retains total flexibility to independently fund, divest, or subsequently introduce its adjacent M59/786 and M59/790 tenements into the venture.

At the time of reporting, Reach Resources’ share price was $0.013.