Majestic Gold Corp. secured an option to acquire a 51% interest in up to eight gold-prospective tenements in Western Australia, collectively called the Fair Adelaide East project, from privately owned Plutus Resources Pty. Ltd.
To acquire a majority stake in the full eight tenements covering 1,322 hectares, the company will pay A$60,000 and spend A$2.0 million on exploration by Dec. 15, 2023.
The company can acquire a 51% interest in less than eight tenements by paying A$60,000, spending at least A$250,000 on each tenement and relinquishing the balance of the tenements back to Plutus.
Following the earn-in, the companies will negotiate a joint venture or a sale of a 44% interest in the tenements from Plutus to Majestic, according to a Dec. 18 news release.
Majestic unit Majestic China Holdings Corp. recently entered into three nonbinding memorandums of understanding to look into acquisitions or joint ventures on four gold projects in the Muping-Rushan gold belt in China's Shandong province.