EV Resources Strikes $6M Deal to Sell Yanamina Gold Project to Daura Gold

Strategic Asset Sale

EV Resources Limited (ASX – EVR) has taken a decisive step to streamline its portfolio by agreeing to sell its wholly owned Yanamina Gold and Silver Project in Peru to Canadian-listed Daura Gold Corp (TSXV – DGC) for a total consideration of US$6 million. This transaction marks a significant milestone for EVR, which originally acquired the project in 2019 for a modest US$100,000 plus milestone payments and a royalty arrangement.

Transaction Structure and Milestones

The deal is structured to deliver value to EVR over several stages, beginning with an initial cash payment of US$150,000 upon closing. Daura Gold will also cover the 2024 concession payments due by mid-2025. Further payments, totaling up to US$5.7 million, are contingent on key project milestones such as securing a social license for extensive drilling, commencement of infrastructure construction, and the start of commercial production. Notably, EVR may receive these payments in cash or Daura Gold shares, providing potential upside linked to Daura’s future performance.

Operational and Financial Implications

By divesting Yanamina, EVR aims to reduce its monthly expenditure and sharpen its focus on core projects. The sale will materially enhance EVR’s cash position, providing financial flexibility without the need for additional funding. Meanwhile, Daura Gold assumes all obligations under the existing project agreement, including commitments to Happy Diamonds Pty. Ltd., signaling a transfer of operational responsibility.

Context and Market Outlook

This move follows a comprehensive review by EVR’s board amid improved gold and silver prices and growing interest from potential buyers. The transaction reflects a broader trend of junior miners realigning portfolios to concentrate on high-priority assets while monetizing non-core holdings. For Daura Gold, acquiring Yanamina offers an opportunity to expand its footprint in Peru’s Ancash region, contingent on community support and regulatory approvals.

Next Steps and Conditions

Completion of the sale remains subject to negotiation of definitive agreements, TSX Venture Exchange approval, and potentially EVR shareholder approval. Investors will be watching closely for these milestones, as well as Daura Gold’s progress in advancing the Yanamina project through social licensing and development phases.