The North Island gold explorer Laneway Resources Ltd (ASX: LNY) has struck a deal that could lead to a cash flow from its gold project in Queensland.
The company has entered into an agreement with a company to mine and treat ore from its Agate Creek gold project.
The deal is with Maroon Gold to mine and process up to 100,000 tonnes of high-grade, near surface ore at its Black Jack processing plant near Charters Towers.
Gold produced will be paid 60% to Laneway and 40% to Maroon above a 3.5 grams/tonne gold head grade, with the initial 3.5 g/t produced to be retained by Maroon.
All Queensland State Government and third party royalty costs will be shared on the basis of the proportion share of gold received.
Maroon also agreed to provide an interest free unsecured loan to Laneway for up to $A500,000 to meet costs to complete the process for the mining lease grant, including Native Title and landholder obligations.
Laneway has less-advanced gold prospects in the Karangahake region of the Hauraki Goldfield on New Zealand’s North Island.