Sumimoto earns 50% interest in South Yamarna

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Image credit: www.goldroad.com.au

Gold Road Resources has announced that Sumimoto Metal mining Oceania, a subsidiary of Sumimoto Metal Mining Co., has increased its interest in the South Yamarna Joint Venture (SYJV) to 50%.

Image credit: www.goldroad.com.au
Image credit: www.goldroad.com.au

It comes after Sumimoto fulfilled the key requirement stated in the 2013 Joint Venture Agreement between the two parties, which said that Sumimoto would earn a 50% share in the SYJV if it contributes A$8 million to exploration of the South Yamaha tenements by the end of 2016.

Gold Road Executive Chairman Ian Murray welcomed Sumimoto’s progression to 50% ownership of the JV, saying the two companies would continue to work together to unlock the “considerable” potential of the underexplored gold belt.

“Having a successful international mining company as a partner has allowed Gold Road to accelerate its evaluation of the South Yamarna tenements in a way that would not have been possible operating alone,” Mr Murray added.

Additionally, the two companies have reached an agreement that will see Gold Road continue as manager of the SYJV while assuming Chairmanship of the SYJV Committee.

“Going forward, each party will elect to rather contribute to exploration expenditure in proportion of its Joint Venture interest or not contribute (and have its Joint Venture interest diluted if the other party contributes),” reads the company’s statement.

The SYJV covers approximately 2,700 square kilometres of tenements in the Yamarna Belt and is part of Gold Road’s broader landholding in the region, which is approximately 5,000 square kilometres. The SYJV tenements include several Camp Scale Targets that the partners have identified as potentially hosting multi-million ounce gold deposits.