GoldArc moves Mt Stirling towards production with mining partnership
GoldArc and BML Ventures have signed a profit-sharing agreement alongside a $2.5m cash advance facility to accelerate development at Mt Stirling.
Special Report: GoldArc Resources has struck a deal designed to fast-track development at its Mt Stirling asset in WA while avoiding equity dilution.
- GoldArc enters into a profit-sharing agreement and $2.5m Profit Cash Advance Facility with BML Ventures
- BML will be appointed as the mine operator managing all mining activities and approvals
- GoldArc says the structure positions the company to prioritise exploration across high-priority targets
The company has entered into a profit-sharing mining agreement with mining operator BML Ventures, alongside a non-dilutive $2.5m cash advance facility to support ongoing exploration.
Under the agreement, BML Ventures will become the statutory mine operator, taking responsibility for all mining activities and approvals across the Mt Stirling and Stirling well tenements.
BML will also fund all capital and operating costs needed to bring the project forward, allowing GoldArc (ASX:GA8) to move the project toward production while minimising upfront development expenditure from its own balance sheet.
The $2.5m facility will provide immediate working capital for exploration while the project moves into the mining phase, with funding available in stages and subject to a decision to mine and other conditions being satisfied under the facility.
Because the advance is tied to future project cash flow rather than new shares, it gives GoldArc a non-dilutive funding path to keep drilling its priority targets.
Net profit from the project, after all costs, will be shared equally between the two parties – 50% to GoldArc and 50% to BML Ventures – with repayment of the advance coming from GoldArc’s share of profit once operations are underway.
“Clear path to generate highest return”
The company describes the agreement as a transformational milestone, one that accelerates the Mt Stirling project (MSP) toward production while positioning GoldArc to pursue new high-impact targets across WA’s eastern Goldfields.
GA8 managing director Paul Stephen said BMLV brings the necessary experience and technical and operational skill set to realise the value from the Mt Stirling project, with minimal upfront cash contributions from GoldArc.
“With access to $2.5 million in non-dilutive funding, the company can focus on executing our systematic exploration strategy at other high-priority targets, while our partner BMLV advances the Mt Stirling project towards production,” he said.
“This agreement shows strong alignment from our partner BMLV and unlocks the value of Mt Stirling, providing a clear path to generate the highest return from the project and deliver exceptional value for shareholders.”
Funds to fast-track exploration
Mt Stirling is part of the wider Leonora North gold asset which comprises the shallow Mt Stirling and Stirling well gold deposits.
BMLV, a privately owned Kalgoorlie-based mining contractor, identified the project’s potential due to grade consistency and proximity to available toll-treatment infrastructure.
Leonora North spans more than 775km2 and sits down the road from Vault Minerals’ (ASX:VAU) 4Moz King of the Hills mine and Genesis Minerals’ (ASX:GMD) Leonora and Kookynie operations.
The $2.5m funding will be provided in five tranches of $500,000 and is intended to be used to strengthen GoldArc’s balance sheet, fund general working capital, corporate overheads and fast-track exploration on the company’s wider tenement portfolio, which is not subject to the profit-sharing agreement.
This article was developed in collaboration with GoldArc, a Stockhead advertiser at the time of publishing.
This article does not constitute financial product advice. You should consider obtaining independent advice before making any financial decisions.
Originally published as GoldArc moves Mt Stirling towards production with mining partnership
