By Samantha James

A new binding heads of agreement will see Stone Resources Australia and MHM Metals jointly develop Stone Resources’ Brightstar gold project near Laverton, WA.

The Brightstar projects covers about 300 square kilometres and includes the previously mined Alpha gold deposit, as well as the Beta, Gamma, Ben Hur, King of Creation and Cork Tree Well gold prospects and the 350,000 tonne per annum Brightstar gold treatment plant, which is currently on care and maintenance.

Stone Resources released an updated resource estimate for the project in June 2015 totalling 13.36 million tonnes grading 1.7 grams per tonne of gold to contain 739,000oz of gold.

Under the agreement, MHM could earn up to 80 per cent in the Brightstar project, with an initial outlay of $7.5 million to secure a 50 per cent interest.

A further $10.5 million in project expenditure would earn MHM majority rights.

The agreement was subject to shareholder approval and set to be formalised by mid-February.