Newly listed Cygnus Gold (ASX: CY5) has expanded its relationship with Gold Road Resources (ASX: GOR) with another exploration joint venture in Western Australia’s southern Wheatbelt. The latest deal, over the Yandina project, links the previous two exploration JVs signed by Cygnus and Gold Road that covered the Lake Grace and Wadderin projects. Gold Road will have 75% of Yandina and Cygnus (25%) will manage the JV.
Highlights
- Cygnus enters new Joint Venture with Gold Road Resources over the Yandina Project in south west WA
- Consolidation of land holding between the Lake Grace and Wadderin earn-in agreement areas
- Total of 7,611km2 now under granted tenure and application in the Southwest Terrane
Yandina Joint Venture
Cygnus Gold (ASX:CY5, the ‘Company’) is pleased to announce it has entered into a new joint venture agreement with a wholly owned subsidiary of Gold Road Resources (ASX:GOR) (Gold Road) over the Yandina Project.
The Yandina Joint Venture comprises four tenement applications covering an area of approximately 1,727km2 over the highly prospective Yandina Shear which is known to host gold mineralisation elsewhere in the Southwest Terrane (Figure 1). The new applications connect the land between Cygnus’ Wadderin and Lake Grace Projects where Gold Road is currently earning in (refer GOR’s ASX announcement 10 October 2017).
A program to explore this new project area is being planned to commence once tenements are granted, expected in late 2018.
Cygnus Gold’s Managing Director James Merrillees said the Company was excited to expand its landholding and build on its partnership with Gold Road, one of Australia’s most successful gold finders over the past decade.
“Since listing only recently in January, Cygnus has focused on drilling our 100 per cent owned projects, achieving a number of high grade gold intercepts, and starting our regional programs. This is our third JV with Gold Road, adding further to the Cygnus story. This is an exciting time for a newly minted gold explorer.”
Yandina Joint Venture Key Terms
- The initial interests in the joint venture are
- Gold Road 75%
- Cygnus Gold 25%
- Should a party’s equity in the joint venture fall to 10% or less, its share will be automatically acquired by the other party in exchange for a 1% NSR
- Cygnus will initially manage the joint venture.