Western Yilgarn NL has announced a joint venture (JV) with Peregrine Exploration to expand its Ida Holmes Project in Western Australia (WA).

Under the terms of the JV, Western Yilgarn has the exclusive right to earn a 90% interest in the E57/1219 tenement by funding A$60,000 ($38,863) of expenditure over three years and reimbursing Peregrine Exploration $5,000 for costs.

Western Yilgarn can withdraw from the agreement with a 30-day notice, provided it meets the minimum expenditure requirements up to the date of withdrawal.

Upon completion of the farm-in period, the two companies will form an unincorporated JV, with Western Yilgarn acting as the manager.

Both parties will then have the option to contribute their share of expenditure proportionate to their interest or face dilution according to standard provisions.

If a party's interest falls below 5%, they will exit the JV and retain a 1% net smelter return (NSR) royalty from mineral production on the tenement.

Located around 50km south-west of the Gold Fields-owned Agnew Gold Project, the Ida Holmes Project is positioned at the intersection of the Mt Holmes Dyke and the Mt Ida Fault.

The project now encompasses 18 exploration tenements covering a total area of 1,300km².

Western Yilgarn is also seeking approval for three new tenements: E57/1452, E29/1279 and E36/1106.

Western Yilgarn chairman Peter Lewis said: “The joint venture with Peregrine Exploration and the successful applications for the E29/1279 and E36/1106, as well as the new Ida Holmes South prospect will strengthen Western Yilgarn’s presence at the Ida Holmes Project and in the broader region.

“With a modern and systematic approach to exploration, the joint venture with Peregrine Exploration and the new licences will in addition to our existing Ida Holmes Project area offer Western Yilgarn significant upside and an opportunity for a significant discovery.”