Cazaly’s Romano Project Faces Uncertainty Despite Dundas Earn-In Deal
Cazaly Resources has struck a deal with Dundas Minerals, allowing the latter to earn an 80% interest in the Romano gold project by funding $2 million in exploration over two years. Cazaly retains a 20% free-carried interest while focusing on its core Goongarrie project.
- Dundas to earn 80% interest in Romano project through $2 million exploration spend
- Upfront consideration of $500,000 in cash and shares to Cazaly
- Potential future payments up to $1.2 million in cash and Dundas shares
- Romano project located adjacent to the Gruyere gold mine in WA
- Cazaly retains 20% free-carried interest until feasibility study completion
Strategic Partnership for Romano Gold Project
Cazaly Resources Limited has entered into a significant earn-in agreement with Dundas Minerals Limited, marking a pivotal step for the Romano gold exploration project in Western Australia’s north eastern Goldfields. Under the terms, Dundas will earn an 80% stake by committing $2 million to exploration activities over the next two years, while Cazaly retains a 20% free-carried interest until a positive feasibility study is completed.
Financial Terms and Project Scope
The deal includes an upfront payment to Cazaly of $500,000, split between cash and Dundas shares, with potential additional payments of up to $600,000 in cash and $600,000 in shares contingent on tenement grants. The Romano project comprises one granted exploration licence and four pending applications, strategically positioned adjacent to the operating Gruyere gold mine, a major asset in the region.
Implications for Cazaly’s Portfolio
For Cazaly, this agreement represents a clear strategic move to monetise a non-core asset while maintaining exposure to potential upside through its retained interest. Managing Director Tara French emphasized that the arrangement allows Cazaly to concentrate resources on its flagship Goongarrie gold project, while benefiting from Dundas’s commitment to advancing Romano’s exploration potential.
Governance and Market Considerations
Notably, Dundas Managing Director Jonathan Downes also serves as a director of Cazaly, though the transaction was conducted at arm’s length and on standard industry terms. The success of this venture will hinge on Dundas’s exploration results and the granting of pending tenements, both of which carry inherent uncertainties but offer promising upside given the project’s proximity to established gold operations.
Looking Ahead
As Dundas embarks on its exploration program, the market will be watching closely for early indications of mineralisation that could justify further investment and development. Meanwhile, Cazaly’s retained interest ensures it remains a stakeholder in any future success, positioning both companies to potentially benefit from the evolving gold landscape in this prolific region.
Bottom Line?
This earn-in deal sets the stage for renewed exploration momentum at Romano, with potential to reshape Cazaly’s asset focus and value proposition.
Questions in the middle?
- Will Dundas meet the $2 million exploration expenditure within the two-year timeframe?
- How will the granting of pending tenements impact the project’s exploration potential?
- What are the prospects for a positive feasibility study that triggers Cazaly’s free-carried interest?
