Alice Queen inks joint venture agreement with St Barbara

Alice Queen inks joint venture agreement with St Barbara

In an otherwise tumultuous week for gold stocks, aspiring miner Alice Queen (ASX: AQX) was shaking hands with established producer St Barbara (ASX: SBM) over an earn-in and joint venture agreement concerning its Horn Island gold project in the Torres Strait, in far-north Queensland.


In an otherwise tumultuous week for gold stocks, aspiring miner Alice Queen (ASX: AQX) was shaking hands with established producer St Barbara (ASX: SBM) over an earn-in and joint venture agreement concerning its Horn Island gold project in the Torres Strait, in far-north Queensland.

Melbourne-based Alice Queen told the market this week it had inked a joint venture arrangement with St Barbara for a farm-in agreement which would see the Australian mid-tier producer earn up to a 70 per cent stake in the Horn Island project within 3 years if it spends $4 million on exploration initiatives during that time.

The agreement excludes the historic Horn Island pit area as well as the area subject to Alice Queen’s existing inferred Mineral Resource; however, a separate agreement has been set in place for St Barbara to farm-in to this as well, should it elect to.

For Alice Queen, St Barbara was the perfect fit for the business as the new partner has a proven track record of developing a gold project on an island – Simberi Island – which bears a striking geographic similarity to that of Horn Island.

“The agreement with St Barbara was formed on the back of extensive talks with a number of interested parties, but ultimately the company was of the view that St Barbara was the perfect fit for both Alice Queen and Horn Island,” Alice Queen managing director Andrew Buxton said.

“We are pleased to have secured St Barbara as our partner for Horn Island and we look forward to working closely together wit ha mutual view of exploring and developing this asset into a profitable gold mine.”

Under the terms of the joint venture arrangement, Alice Queen retains the right to continue pursuing exploration activities on Horn Island where its existing Mineral Resource (and the rest of the excluded zone) lies through to - and past - bankable feasibility study stage, and also plans to assist St Barbara in exploration activities over the joint project area to boost relationships and experience on the ground.

For Alice Queen, the joint venture represents an opportunity to advance and showcase the true potential of Horn Island to the national/global stage.

Following a strenuous vetting process, Alice Queen chose St Barbara as its joint venture partner for its technical capability, financial security and operational flexibility to work together to realise and fully maximise the potential that Horn Island hosts.

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