Legacy Minerals has locked in a farm-in deal with Aurelia Metals for its Cobar Project, allowing Aurelia to earn up to 90% by funding exploration. This partnership leverages Aurelia's established Cobar Basin operations while Legacy focuses on its flagship Mt Carrington project.
- Aurelia Metals to earn up to 90% interest by funding A$2 million exploration
- Legacy retains 10% joint venture interest or Net Smelter Return royalty
- Partnership leverages Aurelia’s existing Cobar Basin infrastructure
- Legacy prioritises Mt Carrington project while benefiting from Cobar exploration
- Agreement includes data reversion to Legacy if Aurelia withdraws
Aurelia Metals to Fund Exploration at Cobar Project
Legacy Minerals Holdings Limited (ASX:LGM) has entered a binding Earn-in and Farm-in Agreement with Peak Gold Mines Pty Ltd, a wholly owned subsidiary of Aurelia Metals (ASX:AMI), covering Legacy’s 100% owned Cobar Project in New South Wales. Under the deal, Aurelia will earn a 51% interest by funding A$500,000 of exploration within two years, with the option to increase its stake to 90% by investing a further A$1.5 million over five years.
This staged earn-in structure places Aurelia firmly in control of exploration programs and budgets during the earn-in period, leveraging its established operations at the nearby Peak Mine and existing processing infrastructure. The arrangement offers a clear development pathway for any discoveries, utilising Aurelia’s local expertise and facilities.
Legacy Minerals Maintains Strategic Focus on Mt Carrington
Legacy’s CEO Christopher Byrne described the partnership as “strategically significant,” highlighting Aurelia’s standing as one of the most established operators in the Cobar Basin. Byrne emphasised that the agreement allows Legacy to preserve upside exposure through either a 10% joint venture interest or a Net Smelter Return (NSR) royalty on gold and base metals once Aurelia completes its earn-in.
While the Cobar Project benefits from Aurelia’s funding and operational footprint, Legacy will continue to prioritise capital and management attention on its flagship Mt Carrington gold-silver project. This approach aligns with Legacy’s strategy of advancing high-quality non-core assets through partnerships, while focusing internal resources on projects with the highest potential returns.
Cobar Basin’s Polymetallic Potential
The Cobar Basin is a prolific polymetallic province hosting multiple operating mines producing copper, gold, lead, zinc, and silver. Legacy’s Cobar Project comprises contiguous exploration licences EL9511 and EL9858, located immediately along strike from operating mines, and interpreted to host geological settings favourable for Cobar-style mineralisation.
Aurelia’s existing footprint in the region, including the Peak Mine, provides a significant advantage in moving from exploration to development, reducing infrastructure risk for any future discoveries. Legacy retains all exploration data and mining information generated during the earn-in, ensuring long-term benefits regardless of Aurelia’s decisions.
Commercial Terms and Future Options
Should Aurelia withdraw before completing the Stage 2 earn-in, all exploration data reverts to Legacy, safeguarding the company’s intellectual property and exploration upside. Upon earning 90%, Aurelia will hold the majority interest, and Legacy must choose between maintaining a 10% joint venture stake or converting to a NSR royalty of 1.5% on gold and 1.0% on base metals produced from the tenements.
This flexibility allows Legacy to balance ongoing involvement with risk management, while leveraging Aurelia’s expertise and funding to advance the project. The farm-in deal represents a low-capital pathway to unlock value in the Cobar Project, complementing Legacy’s broader portfolio.
Legacy’s Broader Exploration Ambitions
Beyond Cobar, Legacy Minerals continues to advance its Mt Carrington project, which hosts a 1.2 million ounce gold equivalent resource with significant exploration upside. Recent drilling and studies are focused on resource expansion and development planning, supported by a series of robust scoping studies and government approvals for further drilling campaigns.
This dual approach, partnering on non-core assets while concentrating internal efforts on flagship projects, reflects a disciplined capital allocation strategy aimed at maximising shareholder value across Legacy’s NSW portfolio.
Bottom Line?
Legacy Minerals’ farm-in deal with Aurelia Metals provides a low-risk route to advance Cobar exploration while preserving upside, but the ultimate value hinges on future discoveries and Aurelia’s funding commitment.
Questions in the middle?
- Will Aurelia Metals meet its full A$2 million exploration commitment within the five-year timeframe?
- How will exploration results at Cobar influence Legacy Minerals’ decision between joint venture participation or royalty conversion?
- Could success at Cobar shift Legacy’s focus or capital allocation away from the Mt Carrington project?