Javelin Minerals (ASX:JAV) strikes path to production at Eureka Gold Project

Javelin Minerals (ASX:JAV) has taken a decisive step toward near-term production and cashflow at its Eureka Gold Project near Kalgoorlie, signing a Right to Mine agreement with full-service contractor MEGA Resources.

The deal is structured to remove the need for upfront capital while still delivering early revenue streams to the junior explorer.

Highlights

• Right to Mine agreement with MEGA Resources for mining, project financing, haulage and services at Eureka.

• Mine plan upgraded: 698,887 tonnes at 1.98 g/t Au, a 32% grade increase.

• Javelin to receive $250,000 monthly pre-payments from first revenues.

• MEGA to fund up to $25 million in development working capital, repayable from project revenues.

• Profit split: 50/50 on current mine plan, 70/30 in Javelin’s favour for additional resources.

• $4.5 million placement secured, cornerstoned by MEGA with a $1 million investment.

• Appointment of former Gateway Mining MD Mark Cossom as General Manager – Exploration and Resources.

The Eureka mine plan is underpinned by a Mineral Resource Estimate of 2.04Mt at 1.69 g/t Au for 110,687 ounces, including an Indicated Resource of 78,678 ounces at 1.8 g/t Au.

This positions Eureka as a modest but robust gold project with scope for growth and under the MEGA deal, Javelin avoids the typical financing pitfalls faced by juniors.

The contractor will shoulder the risk by providing up to $25 million in working capital, covering mining, haulage, and engineering services.

Importantly, Javelin will receive cash pre-payments of $250,000 per month from its share of profits, supporting the company’s financial position from first revenues.

In parallel, Javelin Minerals has locked in a $4.5 million placement at $0.0025 per share, with MEGA anchoring the raise and strong support from Kalgoorlie mining investors.

A planned 1-for-31 share consolidation will tighten the capital structure ahead of mining commencement.

Executive Chairman Brett Mitchell emphasised the strength of the partnership:

“MEGA is a highly regarded mining contractor with the people, expertise and material balance sheet to support development of the project. Their ability to provide a fully integrated mining and financing solution will enable Javelin to advance towards production in the most time efficient and co-ordinated manner.”

Mining at Eureka is slated to begin in the June quarter of 2026, pending final approvals and a binding ore purchase agreement with a third-party processing plant.

Javelin is also planning new drilling programs to test extensional targets at Eureka and is reviewing other WA Goldfields projects to complement its production base.

The appointment of industry veteran Mark Cossom adds further depth as the company transitions from explorer to producer.

While challenges remain, Javelin has established a clear pathway to early production, cashflow, and potential resource growth.