Helix Resources (ASX: HLX) has partnered with Legacy Minerals (ASX: LGM) in an earn-in joint venture to explore the Central Cobar Project in New South Wales.
The two companies signed a binding letter agreement outlining the terms of the staged earn-in and joint venture. The Central Cobar Project, which spans 308 km² in the well-established Cobar mining region, is considered promising for gold, copper, silver, and base metals.
Under the agreement, Helix, with a market capitalization of $6.52 million, can earn an 80% interest in the project by investing $2.8 million across three distinct stages. The initial commitments involve geophysical surveys and 700 meters of drilling to be completed within the first 12 months.
At each stage, Legacy Minerals has the option to either contribute to the project or dilute its interest. Should Legacy choose to dilute, its stake could drop below 10%, converting its interest into a net smelter royalty (NSR) of 2% for gold or 1.2% if base metals are predominant.
Kylie Prendergast, Managing Director of Helix Resources, emphasized the strategic nature of the agreement, noting that the project is close to existing gold and copper operations and holds the potential to uncover Cobar-type mineralization with multiple promising targets.
“We are delighted that Legacy has recognized the value of our local expertise,” Prendergast said. “We look forward to collaborating with them to potentially make new discoveries in this underexplored area.”
Helix is currently planning ground geophysical surveys over up to three high-priority targets, with drilling to commence as soon as possible, depending on weather conditions and contractor availability.
Additionally, Helix will systematically evaluate multiple other targets generated by Legacy Minerals through fieldwork, auger geochemical sampling, and further geophysical analysis.
Christopher Byrne, CEO of Legacy Minerals, highlighted the strategic location of the Central Cobar Project and the geological potential of the untested areas. He expressed confidence in Helix’s ability to advance the project, given their extensive experience and knowledge of the Cobar region.
“This agreement allows us to unlock the potential of the Central Cobar Project while maintaining our focus on our 100%-owned projects — Drake, Black Range, and Thomson,” Byrne said.
The Central Cobar Project’s targets align well with Helix’s existing exploration portfolio, offering additional exposure to Cobar-style copper, gold, and base metal opportunities, including several undrilled targets that can be quickly advanced to the drilling stage.
Helix Resources, a copper-focused exploration company, holds a substantial ground position covering 3,300 km² in a region that, despite its proximity to significant copper and gold operations, remains largely unexplored.
