De Grey Mining is now eligible to earn a 50 per cent joint venture interest in Novo Resources Corporation’s Egina Project after fulfilling the initial expenditure stated in the binding heads of agreement between the two companies.
The HOA, which the pair entered in June 2023, covers Novo’s Egina Project, adjacent to De Grey’s Hemi Regional Gold Project. The HOA allows De Grey to earn 50 per cent of the Egina Project following an initial expenditure of $7 million within 18 months, and an additional $18 million within four years from the date of the HOA.
Through the earn-in, De Grey’s exposure to the region through exploration area increases by 70 per cent when combined with the 100 per cent-owned Hemi Regional Gold Project area.
De Grey’s General Manager of Exploration, Phil Tornatora, said, “The Egina Project is an important part of De Grey’s strategy to grow a large regional-scale resource base around the planned Hemi processing plant.
“The Egina tenements are approximately 1,000km2 and significantly grows the land position De Grey has exposure to around Hemi. Egina contains major structures and geological units which extend from Hemi and is prospective for large intrusion-hosted deposits like Hemi and orogenic gold deposits. Large prospective areas of the Egina Project have not been explored, so we believe the area still has exciting potential.
“During the September quarter, De Grey satisfied its minimum expenditure commitment by spending $7 million over a 15-month period. Our intention is to continue to progress exploration on the Egina tenements towards forming a 50:50 joint venture subject to ongoing assessment of exploration results on the project.”
Novo’s Executive Co-Chairman and Acting CEO, Mike Spreadborough, said the company is delighted that De Grey shares its enthusiasm for the Egina Gold Project.
“We’ve been exploring the Mallina Basin since 2017, attracted by its gold prospectivity. To be able to partner with a group like De Grey, with its nearby Hemi deposit, provides the best opportunity for us to drive value for our shareholders at Egina, through any potential new discoveries and future exploration success.
“Importantly, De Grey is just starting to explore at Egina, with several highly prospective areas yet to be systematically tested, providing multiple new targets to explore and build upon the platform set by De Grey over the past 12 months.
“Meanwhile, we remain focussed on progressing our prospects in the Pilbara and Victoria, as well as assessing project generation opportunities.”
