Javelin Minerals Limited (ASX: JAV) has announced a Right to Mine agreement with MEGA Resources for its Eureka Gold Project near Kalgoorlie, Western Australia. Javelin Minerals is focused on the exploration and development of resource projects. The agreement paves the way for early production and cash flow, with MEGA Resources fully funding operations. Javelin is set to receive 50% of the profits, along with monthly cash pre-payments of $250,000 commencing from first revenues.
Under the agreement, MEGA Resources will manage mining, project financing, and haulage services. The Eureka Gold Project boasts a granted Mining Lease and a resource estimate of 2.04Mt at 1.69g/t Au for 110,687oz Au. A 2025 Eureka mining plan update indicated a grade increase of 32% from 1.5 g/t to 1.98 g/t Au. Mining is scheduled to commence in the June quarter of 2026, contingent on mining approvals and a binding Ore Purchase Agreement with a third-party processing mill.
MEGA Resources, a full-service mining contractor, will provide a financing facility of up to $25 million in Eureka development working capital. This eliminates any upfront funding requirements for Javelin. In addition, Javelin has secured firm commitments to raise A$4.5 million via a Placement to professional and sophisticated investors at A$0.0025 per share, with MEGA contributing $1 million as a cornerstone investor.
Following the placement, Javelin intends to undertake a 1-for-31 capital consolidation, pending shareholder approval. The company has also appointed Mark Cossom as General Manager – Exploration and Resources. New drilling programs are planned to test extensions and potential growth of the existing gold Resource, as Javelin reviews new exploration projects in the WA Goldfields.
