Rockfire Resources PLC (LON: ROCK) has signed a binding farm-in agreement with Eastern Resources Limited (ASX: EFE) to advance exploration at its 100%-owned Marengo Gold Project in Queensland, Australia. The deal targets high-grade gold, silver, and copper potential at the Marengo Goldfield.
Eastern will sole-fund A$1.5 million of exploration over three years, earning incremental ownership stakes up to 80% once all commitments are met. Rockfire will then have the choice to keep a 20% interest and co-fund on a pro-rata basis or convert its holding into a 1.5% net smelter royalty.
Highlights
• Rockfire has entered into a binding Farm-in agreement with Eastern Resources Limited (“Eastern”) to advance the Marengo gold deposit in Queensland. Eastern is listed on the Australian Stock Exchange (ASX:EFE).
• The Farm-in is over the Marengo tenement (EPM25715) (the “Tenement”)
• The Farm-in sees Eastern sole-funding exploration at Marengo for the next 3 years, with funding being engaged on direct expenditure on the tenement.
• Rockfire will continue to focus its financial, logistical and human resources on the Molaoi zinc deposit in Greece, which hosts an Inferred, JORC resource of 15 million tonnes @ 7.26% zinc, 1.75% lead, and 39.5g/t silver for 1.5MT of zinc equivalent. The project also hosts the critical mineral, Germanium.
• Rockfire has the option to retain 20% ownership of Marengo, and to participate 20% expenditure in on-going exploration, or it may elect to convert its right over a 20% share to a 1.5% net smelter royalty. With this structure, any discovery success by Eastern will directly benefit shareholders of Rockfire.
Chief executive David Price said, “The establishment of this Farm-in and eventual joint venture is a positive step for the Marengo project and for Rockfire generally. This enables our team to focus its efforts on the Molaoi project in Greece and allows for the advancement of Marengo at the same time.”
“The joint venture structure is designed so that Eastern will sole-fund exploration costs on the project, with minimum allowance for administration costs. We are delighted to welcome Eastern Resources to the Marengo Project, and we believe that the team at Eastern will deliver sound geological understanding to the project, which we all hope will result in a significant discovery.”
“In the meantime, our drilling at Molaoi in Greece has recommenced and the market will be informed regularly as our drilling programme progresses and as drilling results are received.”
