Ausgold to Earn 70% of Kulin Gold Project with $610K Spend Over Three Years

• Farm-in agreement grants Ausgold up to 70% stake in Kulin Gold Project
• Ausgold to spend $610,000 over three years to earn interest
• Critica retains 30% interest or can convert to 1.5% net smelter royalty
• Critica reallocates capital to focus on Jupiter Rare Earth Element Project
• Jupiter project holds significant inferred resources and strategic infrastructure

Strategic Farm-In Agreement with Ausgold

Critica Limited has formalised a farm-in agreement with Ausgold Limited concerning the Kulin Gold Project, located roughly 75 kilometres northeast of Ausgold’s Katanning Gold Project in Western Australia. Under this arrangement, Ausgold can earn up to a 70% interest in the Kulin Project by investing $610,000 over three years, split into two stages, $250,000 within 18 months to acquire 51%, followed by an additional $360,000 over the next 24 months to secure a further 19%. This deal allows Critica to reduce its cash outlay on a non-core gold asset while maintaining exposure to potential upside.

Refocusing on the Jupiter Rare Earth Element Project

This farm-in agreement aligns with Critica’s broader strategy to prioritise capital deployment towards its flagship Jupiter Rare Earth Element (REE) Project. Situated in Yalgoo, Western Australia, Jupiter is notable for being Australia’s largest and highest-grade clay-hosted rare earth deposit. The project boasts a global inferred resource of 1.8 billion tonnes at 1,700 parts per million total rare earth oxides, including 520 million tonnes at 2,200 ppm. It also contains 682 kilotonnes of magnet rare earth oxides, critical for emerging technologies.

Infrastructure and Strategic Advantages

Jupiter benefits from excellent infrastructure, including proximity to the Geraldton-Mount Magnet highway and a mid-west gas pipeline, facilitating year-round access and operational efficiency. Additionally, the project is near established rare earth processing facilities such as Lynas Rare Earths’ concentrator at Mount Weld and Iluka Resources’ planned facility at Eneabba, positioning Critica well within the rare earth supply chain.

Implications for Shareholders and Future Development

Critica shareholders retain a 30% contributing interest in the Kulin Project post-earn-in, with the option to convert this stake into a 1.5% net smelter royalty upon a mining decision. This structure balances risk and reward, allowing Critica to benefit from any future discoveries or development at Kulin without the immediate capital burden. Meanwhile, the company can channel resources and management focus into advancing the Jupiter REE Project, which holds significant promise amid growing global demand for rare earth elements.

Bottom Line?

Critica’s farm-in deal with Ausgold marks a clear pivot towards rare earths, setting the stage for focused growth in a critical minerals sector.

Questions in the middle?

• How will Ausgold’s exploration progress influence the valuation of the Kulin Gold Project?
• What are the next development milestones for the Jupiter REE Project in 2025 and beyond?
• Could Critica’s capital reallocation accelerate rare earth production timelines?