Mila Resources Plc, the post-discovery gold exploration accelerator, has signed an exploration and option agreement relating to three highly prospective gold projects in Queensland, Australia with EMX Broken Hill Pty Ltd and EMX – NSW 1 Pty Ltd.
The exploration portfolio is intended to complement Mila’s primary asset, the Kathleen Valley Gold Project, located in Western Australia.
Highlights:
- Option to purchase three highly prospective projects with proven gold mineralisation, each with the potential to materially expand Mila’s mineral resource inventory.
- The company is fully funded to undertake the exploration work, with AUS$450 000 (approximately £230 000) to be committed within one year of executing the option agreement.
- The company will initially pay AUS$25 000 in cash and issue 16 million warrants exercisable at 1p per ordinary share for the option agreement. The option must be exercised within 12 months. However, any further payments are subject to exploration and development success.
- The option agreement underlines the company’s post-discovery gold exploration accelerator model with the aim of building value from applying systematic exploration work, metallurgical studies, and initial ESG work to best determine the optimum path to production.
- The company’s priority remains the advancement of Kathleen Valley, together with its partner, ASX listed Liontown Resources Ltd, to unlock value from both the lithium and gold mineralisation identified at the project.
- Following the commencement of spodumene production at Liontown’s Kathleen Valley Project in July 2024, engagement with local stakeholders with regard to ongoing exploration activities is continuing with further news expected in 4Q24.
Mark Stephenson, Executive Chairman of Mila, comments:
“We are looking forward to advancing these projects alongside Kathleen Valley, as we continue to build critical mass within our exploration accelerator portfolio. Importantly, we have structured a transaction to ensure that new funds are ‘going in the ground’ and milestone payments are linked to geological success and development. Mila will now employ a targeted and strategic work programme across all of the properties to further prioritise the company’s resources.
“We expect ground exploration work to commence at Yarrol, the most advanced of the three projects within the Exploration Portfolio, within the coming weeks whilst the team plan for geophysical surveys across Mt Steadman and Mt Weary in early 2025. Our technical team, led by Neil Hutchison and Alistair Goodship, have be en on site earlier this month and are extremely enthusiastic about the potential across the exploration portfolio.
“Alongside this new work, our attention remains very much focussed on our Kathleen Valley project, and, following Liontown’s announcement confirming that it commenced production of spodumene concentrate in July, engagement with local Tjiwarl people has continued to progress and we look forward to our advancing dialogue. It remains our primary objective to advance and unlock value from this project, in respect to both lithium and gold development, and we will update shareholders in due course with expected timetables.”