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Neo Resources Limited is pleased to announce that it has signed a Farm-in and Joint Venture Agreement (JV Agreement) with Oroya Mining Limited (Oroya) over Oroya’s Sofala project in the Lachlan Fold Belt of New South Wales. The joint venture (JV) is called the Wiagdon Thrust Joint Venture (WTJV) and consists of a suite of 10 gold and base metal exploration licenses (4 granted and 6 under application) covering about 2,000 square kilometres.

Neo Resources Limited’s principal objective in entering into this joint venture is the drilling of 6 gold targets identified by Oroya through their recent regional geochemical exploration of the area, which was aimed at the discovery of large tonnage, disseminated and vein-hosted gold and base metal deposits. The WTJV will also carry out further geological, geochemical and geophysical exploration of the leases.

Under the Terms of the WTJV, Neo Resources Limited may earn a 70% interest by funding exploration and administration to a value of $1.5 million over a two year period during the earn-in phase. After the earn-in phase, Oroya will be free-carried with a 30% interest to completion of a Feasibility Study and a Decision to Mine. Following a Decision to Mine, both JV parties will contribute to development expenditure in accordance with their interest or dilute under a standard dilution formula. If a JV party’s interest dilutes to 10% or less, that party will be deemed to have withdrawn from the JV and their interest will convert to a 2% net smelter royalty.

The WTJV includes an Area of Influence in which interests in tenements acquired by either party within 25 kilometres of the project tenements will be included in the joint venture.