STAWELL based mineral exploration company, Navarre Minerals has reached an historic agreement with Catalyst Metals that will enable Catalyst to earn an interest in Navarre's Tandarra Gold Project.
Following more than six months of negotiations, Navarre Minerals announced last Friday that it has signed a formal Heads of Agreement with fellow Victorian gold explorer Catalyst Metals that will see Catalyst spend three million dollars over the next four years to earn a 51 per cent equity interest in Navarre's 100 per cent owned Tandarra Gold Project at Dingee, 40 kilometres north of Bendigo.
Tandarra adjoins the southern edge of Catalyst's Four Eagles Gold Project with both projects containing high-grade gold mineralisation at shallow depths (as close as 20 metres below the Earth's surface).
Navarre will also transfer its interest in two other gold projects, Sebastian and Raydarra, which are both owned by Castlemaine Goldfields Limited, to Catalyst.
Navarre has been earning a 51 per cent interest in both projects. However under the terms of agreement, should Catalyst find a mineral deposit on either Sebastian or Raydarra, Navarre shareholders will benefit by earning a one per cent royalty interest on Catalyst's share of gold production from those properties.
This is the first time that four of the most prospective gold projects in Victoria, as well as the 60 kilometre strike length of the North Bendigo Gold province, have been under single management.
Navarre Minerals shareholders are also entitled to exposure to Catalyst's Four Eagles Gold Project through 500,000 Catalyst shares which forms part of the transaction.
There has been a major shift in mineral exploration in Victoria over the past year, and this deal allows Navarre to focus on its emerging porphyry copper properties in western Victoria.
Managing Director of Navarre Minerals, Geoff McDermott, welcomed the agreement and called it a 'win-win situation' for both Navarre and Catalyst.
"We are delighted to be advancing, in combination, the prospective north Bendigo interests of two of Victoria's leading exploration companies," Mr McDermott said.
"Navarre shareholders will continue to benefit from exposure to ongoing exploration at Tandarra and the wider north Bendigo region under Catalyst's stewardship while we focus our attention on our Miga Arc copper-gold properties."
Mr McDermott is confident that under the leadership of highly respected Catalyst executive director, Bruce Kay, Tandarra will be in good hands.