Australia-based Alchemy Resources Limited has announced that it has entered into a binding option agreement with local miner Newcam Minerals Pty Ltd. under which Newcam can earn up to a 60 percent interest in Alchemy’s iron ore assets in Western Australia’s Bryah Basin, with Alchemy retaining a 40 percent interest free-carried to a decision to mine.
Key terms of the agreement
- Newcam will pay an initial A$500,000 for a six-month option to conduct due diligence, followed by a further A$500,000 on exercise of the option.
- The agreement covers Alchemy’s Valley Bore and Old Highway iron ore prospects.
- Upon execution of the option, Newcam will become the operator of the joint venture and carry the project through to feasibility study, which must be completed within five years.
Strategic implications and next steps
James Wilson, CEO of Alchemy, noted that the agreement is a “transformative opportunity” for the company, providing immediate funds, exposure to iron ore value upside and aligning with the company’s growth strategy. The maiden drilling program at the Valley Bore prospect is planned to be completed in the December 2025 quarter, signaling accelerated activity ahead.
