REZ Secures Rembrandt JV to Fund Maranoa Gold Production with Upside Profit Share

Capital-Light Production Deal with Rembrandt Mining

Resources & Energy Group (ASX:REZ) has taken a significant step towards near-term gold production by signing a binding term sheet with Rembrandt Mining for the Maranoa Gold Deposit in Western Australia. The deal positions Rembrandt as the contract operator responsible for funding and executing all capital expenditure, including drilling, mining, and processing infrastructure, effectively removing the capex burden from REZ.

Under the agreement, REZ retains 100% ownership of the Maranoa tenement and remains the legal mining operator for regulatory purposes. This structure allows REZ to preserve its capital and management focus while benefiting from operational expertise and funding provided by Rembrandt.

Sliding Scale Profit Share Enhances Upside

The financial terms include a sliding scale profit share that starts at an even 50/50 split when gold prices are at A$3,000 per ounce, increasing to a 60/40 split in favour of REZ if prices reach A$7,000 per ounce or higher. This tiered profit-sharing mechanism offers REZ meaningful leverage to gold price upside while maintaining cost discipline at lower price points.

Operating expenses will be recovered on an open-book, cost-plus-zero markup basis before profits are split, ensuring transparency and alignment of interests. Processing is planned primarily through third-party toll milling, with on-site vat leaching as a fallback option, leveraging prior trial work completed in 2025.

Strategic Focus on Exploration Growth Projects

The arrangement frees REZ’s capital and management resources to advance exploration and resource definition at its adjacent East Menzies Gold Project deposits: Goodenough, Gigante Grande, and Granny Venn. Goodenough holds a 61,200-ounce resource with 92% classified as Indicated, while Gigante Grande features a 40,700-ounce Inferred resource plus a conceptual exploration target ranging from 160,000 to 500,000 ounces. The latter remains highly uncertain pending further drilling and resource confirmation.

This strategic pivot aligns with REZ’s recent resource upgrade at Goodenough and ongoing drilling campaigns targeting resource expansion, positioning the company to build longer-term value beyond Maranoa’s near-term production potential.

Operational and Governance Details

Rembrandt Mining, led by Managing Director Adrian Hall, who brings over 20 years of metallurgy and project management experience and a track record of gold plant operations, will implement selective, low-dilution mining methods focused on grade control and ore/waste separation to maximise recovered ounces and project margins.

The term sheet allows 30 days for formal joint-venture documentation, with Rembrandt responsible for all mining-related approvals, environmental permitting, and rehabilitation work. REZ will oversee compliance as the legal operator and retains veto rights over pit design changes and other critical decisions.

Rembrandt will fund all working capital and capital expenditure until a 300,000-ounce gold inventory threshold is reached. At that point, REZ may opt to co-develop a carbon-in-leach (CIL) processing plant on a 50/50 cost-share basis, introducing potential future capital commitments.