Impact Minerals (ASX:IPT) advances Commonwealth gold-silver joint venture with Kuniko

Impact Minerals (ASX:IPT) has crystallised another step in its strategy of monetising non-core assets, with Kuniko Limited (ASX:KNI) formally entering into an earn-in and joint venture agreement over the Commonwealth Project in New South Wales’ Lachlan Fold Belt.

The agreement, which follows successful due diligence, marks a shift in operational focus for Impact as it seeks to prioritise its Lake Hope High Purity Alumina project and ongoing exploration at Broken Hill.

Highlights

• Kuniko secures right to earn up to 70% of the Commonwealth Project in NSW.

• Initial earn-in terms require $1.5 million expenditure within two years for a 51% interest, with a further $1.5 million to move to 70%.

• Impact receives 3.125 million Kuniko shares, subject to staged escrow.

• Kuniko to free-carry Impact’s 30% interest up to a Decision to Mine.

• Project hosts inferred resources of 88,800 ounces gold and 3.3 million ounces silver, plus base metal credits.

The Lachlan Fold Belt is regarded as one of Australia’s most fertile mineral provinces, host to world-class porphyry, epithermal and volcanogenic massive sulphide deposits.

The Commonwealth Project spans 565 square kilometres about 100 kilometres north of Orange and has long drawn comparisons with the Eskay Creek deposit in Canada’s Golden Triangle, a world-class gold-silver operation that produced more than four million ounces of gold and 180 million ounces of silver.

Impact has already defined an Inferred Resource at the Commonwealth deposit of 912,000 tonnes grading 2.4 grams per tonne gold and 44 grams per tonne silver, equating to 70,800 ounces of contained gold and 1.3 million ounces of contained silver.

The Silica Hill prospect, also within the project area, has a further 2 million ounces of contained silver and 18,000 ounces of contained gold.

All resources sit within 250 metres of surface, with mineralisation remaining open at depth and along strike, providing potential for expansion.

The structure of the earn-in provides Kuniko with a clear pathway to majority ownership, while allowing Impact to retain upside exposure without near-term funding commitments.

Kuniko must spend $1.5 million within the first two years to secure a 51 per cent stake and a further $1.5 million in the subsequent two years to lift its holding to 70 per cent.

Impact will be free-carried on its residual 30 per cent interest until a decision to mine, at which point it can elect to contribute or dilute to 10 per cent, subsequently converting to a 2 per cent net smelter royalty.

Impact Minerals Managing Director Dr Mike Jones said Kuniko had wasted no time in advancing plans at the project.

“Kuniko have moved quickly to get up to speed with the Commonwealth project and are now preparing for their first stage of work to further refine some of Impact’s targets, as well as new ones already identified, ready for drilling.”

The transaction follows Impact’s earlier divestment of the Blackridge project and demonstrates a consistent approach of leveraging third-party funding to progress assets outside its core portfolio.

By reducing direct expenditure at Commonwealth, the company can direct resources towards Lake Hope, where it is advancing plans for high purity alumina production, and its ground position in Broken Hill, long considered prospective for base and precious metals.

For investors, the joint venture represents an example of risk-sharing in a period of elevated gold and silver prices.

It provides Impact with a retained interest in a project with recognised exploration potential, while handing operational control to a partner willing to commit exploration capital.

In a broader industry context, the agreement underscores the continuing attraction of Lachlan Fold Belt projects to listed explorers seeking scale and discovery leverage, with Kuniko now set to refine and prioritise drill targets at Commonwealth ahead of its first campaigns.

With the earn-in milestones tied to exploration spend, investors will be watching closely for progress that could confirm the project’s ability to deliver additional resources and reinforce the strategic value of Impact’s retained interest.

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