What's Happening?
Alchemy Resources has signed a binding option agreement with Newcam Minerals, allowing Newcam to earn up to a 60% stake in Alchemy's Bryah iron-ore assets. Newcam will pay A$500,000 for a six-month option while
conducting due diligence, with a further A$500,000 payable upon exercising the option. The agreement covers Alchemy's Valley Bore and Old Highway prospects, with Alchemy retaining a 40% interest, free carried to a decision to mine.
Why It's Important?
The partnership with Newcam Minerals provides Alchemy Resources with immediate funding strength and validates its strategy. The agreement accelerates the advancement of Alchemy's iron-ore assets, positioning the company for future growth and project development. This collaboration may enhance Alchemy's competitive position in the mining industry.
What's Next?
During the option period, Alchemy plans to complete a maiden drill program at the Valley Bore prospect to test hematite exposures. Newcam will assume operatorship of the iron-ore assets once the option is executed, leveraging its expertise in mine development and operation.
Beyond the Headlines
The partnership may contribute to economic development in the region, providing job opportunities and supporting local communities. Alchemy's strategic collaboration with Newcam Minerals could set a precedent for other junior mining companies seeking growth through partnerships.
