EMX and Mila Resources sign agreement to explore Australian projects

Under the agreement, EMX will receive an immediate cash payment of A$25,000 ($16,396). Photo: BJP7images/Shutterstock.com.

Exploration company EMX Royalty has entered into an exploration and option agreement with UK miner Mila Resources for its Yarrol, Mt Steadman and Queensland Gold projects.

The projects are located in the Tasmanian Orogenic Zone in eastern Australia, a region known for its historic gold mines and deposits.

As part of the agreement, EMX will receive an immediate cash payment of A$25,000 ($16,396) and 16 million warrants to purchase Mila shares with an exercise price of £0.01.

Mila has the option to acquire a 100% interest in the projects by completing work commitments in the amount of A$450,000 by the end of the first anniversary of the agreement.

Upon exercise of the option, Mila will issue shares equivalent to £110,000 and make an initial upfront royalty payment in cash, shares or bullion equivalent to 20 ounces (oz) of gold.

EMX will also receive an unlimited royalty on the smelter’s net profits of 2.5% and annual upfront royalty payments that will increase over time.

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The agreement provides that by the second anniversary Mila must pay EMX an additional A$125,000 and commit to a resource assessment that complies with the JORC Code or NI-43-101 standards.

By its fifth anniversary, Mila must have completed 30,000 meters of drilling or identified a resource of at least 400,000 ounces of gold.

In addition to gold, the Yarrol Project also contains cobalt-enriched manganese oxide deposits and heavy mineral sand deposits.

EMX carried out a confirmatory drilling program on two wells at Yarrol in late 2022, with promising results.

In May 2023, EMX signed an exploration agreement with Many Peaks Gold for the Yarrol and Mount Stedman projects, but in mid-2024, Many Peaks reverted both projects to focus on West Africa without pursuing identified gold anomalies at the Mount Stedman project.

Many Peaks also selected the Queensland Gold project in 2020 and has undertaken several exploration programs.

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