Brightstar Resources (ASX:BTR) signed a binding term sheet with Cazaly Resources (ASX:CAZ) to grant Cazaly the option to earn up to an 80% equity in the Goongarrie gold project in West Australia by solely funding exploration expenditure of up to AU$3 million, according to a Wednesday Australian bourse filing.
Cazaly will spend AU$1 million over 12 months for an initial 25% interest, then AU$1 million over 18 months to increase its stake to 51%, and another AU$1 million over 18 months to further boost its stake to 80%, added the filing.
Once Cazaly earns an interest in the Goongarrie Gold Project, the companies will form a joint venture, the filing added.
Gold mineralization at the project's Hastings prospect extends for over 1 kilometer and is open along strike and at depth, Cazaly Resources said in a separate filing. Anomalous intercepts include 38 meters at 3.1 grams per tonne grade of gold.
Disclaimer: Investing carries risk. This is not financial advice. The above content should not be regarded as an offer, recommendation, or solicitation on acquiring or disposing of any financial products, any associated discussions, comments, or posts by author or other users should not be considered as such either. It is solely for general information purpose only, which does not consider your own investment objectives, financial situations or needs. TTM assumes no responsibility or warranty for the accuracy and completeness of the information, investors should do their own research and may seek professional advice before investing.