Exploration company EMX Royalty has entered into an exploration and option agreement with Mila Resources, a UK-based mining company, for its Yarrol, Mt Steadman, and Queensland Gold projects.

The projects are located in the Tasman Orogenic zone of eastern Australia, a region known for its historic gold mines and deposits.

EMX will receive an immediate cash payment of A$25,000 ($16,396) and 16 million purchase warrants of Mila stock with a strike price of £0.01, as part of the agreement.

 Mila has the option to acquire a 100% interest in the projects by completing A$450,000 in work commitments by the end of the first anniversary of the agreement.

Upon exercising the option, Mila will issue shares equivalent to £110,000 and make an initial advance royalty payment in cash, shares, or bullion equivalent to 20 ounces (oz) of gold.

EMX will also receive an uncapped 2.5% net smelter return royalty and annual advance royalty payments, which will increase over time.

The agreement stipulates that by the second anniversary, Mila must pay EMX an additional A$125,000 and commit to a resource estimate compliant with JORC Code or NI-43-101 standards.

By the fifth anniversary, Mila is required to complete 30,000m of drilling or define a resource of at least 400,000oz of gold.

Besides gold, the Yarrol project also contains cobalt-enriched manganese oxide mineralisation and heavy mineral sands deposits.

EMX conducted a two-hole confirmation drill programme at Yarrol in late 2022, yielding promising results.

In May 2023, EMX signed an exploration agreement with Many Peaks Gold for the Yarrol and Mt Steadman Projects, but Many Peaks returned both projects in mid-2024 to focus on Western Africa, without following up on identified gold anomalies in the Mt Steadman project.

Many Peaks also optioned the Queensland Gold project in 2020 and conducted several exploration programmes.