How GoldArc’s $2.5M Deal with BML Ventures Could Fast-Track Mt Stirling Gold

Strategic Partnership to Unlock Mt Stirling Value

GoldArc Resources Limited (ASX, GA8) has taken a decisive step forward in advancing its Mt Stirling Project by entering into a strategic partnership with Kalgoorlie-based mining contractor BML Ventures Pty Ltd. This alliance is anchored by a Profit Sharing Mining Agreement (PSMA) and a $2.5 million Profit Cash Advance Facility, designed to accelerate the project’s development while preserving GoldArc’s capital for exploration elsewhere.

The PSMA grants BML Ventures the role of statutory Mine Operator, responsible for all mining activities, approvals, and funding of capital and operating costs. This arrangement effectively transfers the financial and operational risk of mining to BML Ventures, while GoldArc retains a 50% share of net profits generated from the project. The partnership is a strategic move to unlock value from the existing JORC Mineral Resources at Mt Stirling without diluting shareholder equity.

Non-Dilutive Funding Boosts Exploration Ambitions

Complementing the mining agreement is the Profit Cash Advance Facility, a non-dilutive funding mechanism that provides GoldArc with $2.5 million in staged tranches. Unlike traditional equity raises, this facility does not require issuing new shares, thereby protecting existing shareholders from dilution. The funds are earmarked for general exploration across GoldArc’s broader portfolio, working capital, and corporate costs, enabling the company to pursue high-impact targets beyond Mt Stirling.

GoldArc’s Managing Director, Paul Stephen, highlighted the significance of this arrangement, noting that it allows the company to focus on systematic exploration while BML Ventures advances Mt Stirling towards production. The partnership aligns operational expertise with financial prudence, positioning GoldArc to maximise returns from its assets.

Pathway to Production and Financial Structure

The agreement anticipates mining commencement within 18 months, contingent on several conditions including vendor royalty elections and execution of binding agreements. BML Ventures has already initiated discussions to secure toll milling partnerships, a critical step for processing ore from the project’s shallow deposits.

Financially, the net profit from mining operations, calculated after deducting all expenses and royalties, is split evenly between GoldArc and BML Ventures. The Profit Cash Advance Facility is repayable solely from GoldArc’s share of these net profits, with repayment terms designed to minimise risk. A mining mortgage over the project tenements secures the facility, but only to the extent of net profits received, limiting GoldArc’s exposure.

Implications for GoldArc’s Growth Strategy

This partnership marks a pivotal moment for GoldArc, enabling the company to unlock value from its Mt Stirling resources while maintaining a strong balance sheet. By leveraging BML Ventures’ operational expertise and funding capacity, GoldArc can accelerate production timelines without compromising its exploration agenda. The move also reflects a broader industry trend where junior miners seek innovative funding and operational partnerships to mitigate risk and capital constraints.

Investors will be watching closely as GoldArc navigates the conditions precedent and moves towards mining commencement. The success of this partnership could serve as a blueprint for advancing other projects within GoldArc’s portfolio, potentially unlocking further value for shareholders.