trending Market Intelligence /marketintelligence/en/news-insights/trending/nghe3hjcl2dlj7mrbsdeew2 content esgSubNav
In This List

Alloy regains control of Horse Well gold JV in Western Australia

Blog

Insight Weekly: US stock performance; banks' M&A risk; COVID-19 vaccine makers' earnings

Blog

Insight Weekly: LNG exports surge; investors unfazed by inflation; neobanks drive VC funding

Blog

Essential Metals Mining Insights November 2021

Blog

[Infographic]: 2021 World Exploration Trends


Alloy regains control of Horse Well gold JV in Western Australia

Alloy Resources Ltd. said Jan. 29 that it reached an agreement with Doray Minerals Ltd. to regain a majority interest and assume management control of exploration at their Horse Well gold joint venture in Western Australia.

Under the terms, Alloy increased its interest in Horse Well to 51% from 40% and took management control by paying A$300,000 in cash and issuing 32,258,065 shares worth about A$200,000.

The company will also fund A$1.4 million in expenditures to increase its project stake to 60%.

Doray can elect to contribute or dilute after Alloy has reached a 60% interest in the Horse Well project. If Doray's interest dilutes to 5% or less, it will revert to a 1% net smelter return royalty.

Doray will retain a clawback right if a 1.5 million-ounce resource is defined on the project. Should Doray decide to exercise its right, it will pay Alloy three times the exploration expenditures to gain a 51% stake, while Alloy will have a 49% free-carried interest until a bankable feasibility study is completed.

Alloy plans to define targets to explore at the project, which is expected to begin before the end of the March quarter.