Great Western Mining Corporation (LSE:GWMO) has entered an Option Agreement with global copper producer KGHM Polska Miedz, under which the incoming partner is set to earn into the pooled Eastside‑Tango Project in Nevada.
London-listed Great Western would be set to retain a 0.6% net smelter royalty on future production.
"The option agreement with KGHM is a clear endorsement of the Eastside‑Tango asset and of our project generation strategy, supporting disciplined capital allocation while preserving upside," said Brian Hall, Chairman.
The deal covers Great Western's 30% participating interest in the pooled Eastside‑Tango land package, and requires a minimum US$5m exploration commitment by KGHM during a six‑year option period alongside execution and annual option payments that aggregate US$650,000 (US$195,000 net to Great Western).
Prior to the option's exercise, KGHM will pay an execution fee of US$50,000 (US$15,000 net) and annual advance royalty payments starting at US$50,000 (US$15,000 net), increasing by US$10,000 per year (US$3,000 net) until total AARs reach US$1.75m or commercial production commences.
Future milestone payments meanwhile are structured so that US$500,000 would be due upon resource declaration, US$750,000 on a Preliminary Economic Assessment, and US$1m on a Feasibility Study (equating to US$150,000, US$225,000 and US$300,000 net to Great Western, respectively).
The arrangement shifts near‑term funding and exploration risk to KGHM while preserving long‑term royalty and milestone exposure for Great Western, consistent with the company's strategy of partnering assets to unlock value.
Great Western, which is focused on strategic minerals in Nevada, said management will concentrate resources on advancing its tungsten corridor project with a maiden Mineral Resource Estimate targeted by the end of 2026.
