Venus Metals is reaping the rewards of its highly successful corporate strategy after Rox Resources and eMetals agreed to exercise agreements with Venus that will see over $3.16 million in cash and shares delivered into the company’s already burgeoning coffers. JV partner Rox Resources has agreed to boost its stake in the Youanmi gold project whilst eMetals has moved to purchase a second lithium project from Venus.
In recent years Venus has shown a level of uncommon prowess in its project acquisition and trading activities relating to a number of alluring precious, base and battery metal projects throughout the fertile geological domains of Western Australia. Two of these projects in particular, Youanmi and Poona, are proving highly profitable for Venus as its partners seek to pay for the right to increase their respective stakes in both projects.
Rox Resources has exercised its option to acquire an additional 20 per cent of the high-profile Youanmi gold project in Western Australia. Under the terms of the option Rox will pay Venus $2 million in cash and a further $1 million in shares.
The transaction will elevate Rox to a 70 per cent holding in the Youanmi OYG joint venture and transition the company into the overall management of the Youanmi, VMC and Curran’s JV in the region. Rox effectively now assumes full management of the Youanmi region leaving Venus free to pursue new opportunities whilst continuing to nurture its interest in the project.
In addition to the Youanmi deal, battery metals developer eMetals Ltd, has entered into an agreement with Venus to purchase its Poona Lithium project.
The purchase agreement delivers $160,000 to Venus upon settlement, with an additional $100,000 payable upon the achievement of key performance milestones – royalties may also be payable to various parties if the project moves into production.
Poona is the second lithium project purchased by eMetals from Venus this year, with the Nardoo project being purchased in March for $15,000 and 25 million shares. The Poona project is made up of two granted exploration licenses and is located 70 km west of Cue in the Murchison region where the tenure is highly prospective for lithium caesium and rubidium.
Venus continues to be well funded and looks set to finish the financial year with over $7 million in cash and other holdings.
Venus is now cashed up to pursue more exploration across its projects in WA with the recent purchase of the Windimurra-Narndee project ranking highly.
Windimurra-Narndee looks to be a target rich environment whilst another Venus project, the Henderson project, is already throwing up some very attractive gold and nickel potential targets.
Is your ASX listed company doing something interesting ? Contact : matt.birney@businessnews.com.au
By Matt Birney
