Pioneer Resources has entered into a Joint Venture Agreement with Northern Star Resources to fast track exploration at its 100%-owned Acra Gold Project, located 60 km north east of Kalgoorlie, WA.
Under the terms of the agreement, Northern star will pay Pioneer $500,000 cash to acquire an initial 20% interest in the project plus the right to earn a further 55% interest (total of 75%) by spending $3 million on exploration within 3 years.
“Following the formation of a Joint Venture Pioneer will continue to be free carried u until the JV securers a DMP approval for a future Mining Proposal,” the company said in a statement.
“When a Mining Proposal is approved, Pioneer will may either contribute pro-rata to future JV expenditure or sell its 25% JV interest at fair market value to Northern Star for cash of NST share at Pioneer’s election.”
Pioneer’s Managing Director, David Crook said the agreement means that forthcoming exploration programmes will be well funded and expedited by one of WA’s most successful gold project developers and miners.
He said attracting Northern Star to the project with a commitment to actively explore was a testament to the quality of the project.
“Northern Star has a very good discovery record in the Kalgoorlie District, and will bring its organisation technical expertise and financial capacity to rapidly advance the Acra Gold Project without further financial impost to Pioneer until a Mining Proposal is approved,” Mr Crook stated.