Mineral Mining Services (MMS) says it has signed a letter of intent (LOI) with GoldArc Resources to establish a strategic development partnership for the Leonora South gold project in Western Australia.
This agreement moves beyond a traditional mining contract to provide a fully funded, low-capital pathway to production. The partnership is designed to fast-track the commercialisation of the project’s existing Orion and Sapphire gold resources by leveraging MMS’s development funding and operational expertise.
The LOI outlines a two-phased approach, commencing with a “Drill-For-Equity” program to align both parties, followed by a full Mine Development Joint Venture. Under the proposed JV, MMS will fund 100% of the development costs required to bring the mine into operation. Following the recovery of its capital from initial cash flow, all project profits will be shared on a 50:50 basis. Subject to execution of the JV agreement, MMS will also be issued 7.5 million listed options exercisable at A$0.04 ($0.03).
Mineral Mining Services Chief Development Officer, Emma Edwards, said: “We’re excited to be partnering with GoldArc at Leonora South. It’s a quality project in a proven gold district and a great opportunity to build something meaningful together. This marks the start of what we hope will be a long and successful collaboration, and our team looks forward to working with GoldArc to help bring the project into production.”
GoldArc Resources Managing Director, Paul Stephen, added: “We are delighted to partner with a group of MMS’s calibre and experience. This is a smart, strategic move for GoldArc that creates a potential clear pathway to realising value from our existing resources at Leonora South at a time of record gold prices. The proposed JV structure is a highly efficient, low-capital solution that enables us to bring forward potential cash flow without significant shareholder dilution.”
