Gold Fields agreed to purchase 13,157,895 shares in Killi Resources. Credit: Enrique from Pixabay.

Killi Resources has signed an earn-in joint venture (JV) agreement with an indirect fully owned unit of Gold Fields, which could see the latter invest up to A$13m ($8.59m) to acquire an 85% interest in the West Tanami Project in Western Australia (WA).

Located in WA’s Kimberley region, the project spans 1,600km² on the Tanami Geological Belt. It includes a 100km strike of the primary gold mineralising structures.

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The JV agreement allows Gold Fields the option to earn a 60% stake by spending A$5m over three years, with a minimum commitment of A$2m within the first two years.

If Gold Fields exercises this option and meets the spending requirement, it can further increase its interest to 85% by investing an additional A$8m within seven years.

Under the JV, Gold Fields will manage and fund the project during the earn-in period.

If Killi’s interest is diluted to 10%, it will have the option to either maintain its stake by contributing to JV expenditures or allow interest to drop to zero in exchange for a 1% net smelter royalty (NSR) over the project.

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Gold Fields can reduce this NSR to 0.5% with a A$5m payment to Killi.

Additionally, Gold Fields agreed to purchase 13,157,895 shares in Killi Resources at A$0.038 per share, pending shareholder approval, to raise A$500,000.

This investment aligns with the JV and demonstrates Gold Fields’ commitment to the project’s exploration and development.

Killi CEO Kathryn Cutler said: “This partnership allows access to expertise and funding for the longer-term and will ensure the project continues its progress in pursuit of a new orogenic gold system in the Tanami.

“Importantly, this $15m valuation of the West Tanami Project represents just one of Killi’s three 100%-owned, belt-scale copper-gold assets.

“Whilst the JV enables systematic exploration to continue in the Tanami, it also enables Killi to focus exploration at the Mt Rawdon West Project where the company will continue to explore in 2024 for a new copper-gold system near Bundaberg.”