Killi Resources has signed an earn-in joint venture (JV) agreement with an indirect fully owned unit of Gold Fields, which could see the latter invest up to A$13m ($8.59m) to acquire an 85% interest in the West Tanami Project in Western Australia (WA).
Located in WA’s Kimberley region, the project spans 1,600km² on the Tanami Geological Belt. It includes a 100km strike of the primary gold mineralising structures.
The JV agreement allows Gold Fields the option to earn a 60% stake by spending A$5m over three years, with a minimum commitment of A$2m within the first two years.
If Gold Fields exercises this option and meets the spending requirement, it can further increase its interest to 85% by investing an additional A$8m within seven years.
Under the JV, Gold Fields will manage and fund the project during the earn-in period.
If Killi’s interest is diluted to 10%, it will have the option to either maintain its stake by contributing to JV expenditures or allow interest to drop to zero in exchange for a 1% net smelter royalty (NSR) over the project.
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Read More: Gold Fields enters deal to earn into Killi’s WA gold project