Gold Road Resources, an Australian junior company, has executed a binding exploration joint venture agreement with Sumitomo Metal Mining Oceania, a subsidiary of Sumitomo Metal Mining, over the southern tenements of Gold Road’s Yamarna land holding 140 km east of Laverton, Western Australia. The joint venture covers more than 2,720 km2 of Gold Road’s tenements in the region, which total about 5,000 km2.
Under the agreement, Sumitomo can earn up to a 50% interest in the joint venture by funding $8 million in exploration activities over the period to December 31, 2016, including spending a minimum of $3.5 million prior to the end of 2014. Sumitomo can earn an initial 30% interest in the joint venture by spending $5 million and can elect to accelerate its funding if supported by strong exploration results.
Gold Road will act as manager of the joint venture during the farm-in period, with oversight from a joint management committee comprising two representatives each from Gold Road and Sumitomo. The companies have agreed to a budget of $1.75 million for a 2013 exploration program that began in May, consisting of surface geochemical sampling and Heli-SAM surveys followed by 15,000 m of RAB/Aircore drilling.