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Highlights

  • Redcastle shares jump 40% to 0.7 cents after signing MoU with Terra Mining Pty Ltd.

  • Profit-sharing alliance to fund and manage open-pit mining at Queen Alexandra and Redcastle Reef.

  • Updated Mineral Resource Estimates and permitting progress expected in H2 2025 to support a definitive agreement.

Redcastle Resources Ltd (ASX:RC1) shares surged by 40% to 0.7 cents at the time of writing on Monday after the company announced a non-binding Memorandum of Understanding (MoU) with Terra Mining Pty Ltd for the development of its gold projects in Western Australia.

The agreement outlines a collaborative mining arrangement at the Queen Alexandra (QA) and Redcastle Reef (RR) gold deposits, located within Redcastle’s 100%-owned ML39/318 tenement in the Eastern Goldfields. Under the terms of the MoU, Terra Mining will fully fund and manage mining operations, which are focused on extracting shallow, high-grade gold mineralisation to a depth of approximately 70 metres.

Notably, recent drilling at QA returned high-grade near-surface gold intercepts, including:

  • 4 metres @ 10.94 g/t gold from 6 metres (RRC212), and

  • 4 metres @ 4.79 g/t gold from 8 metres (RRC204),
    as detailed in Redcastle’s 5 March 2025 ASX announcement.

The open-book, performance-based profit-sharing model aligns with Redcastle’s goal to monetise high-grade ore quickly while minimising capital expenditure and avoiding shareholder dilution. Under this proposed alliance, Terra Mining will undertake key operational responsibilities including drill and blast (where necessary), load and haul, pit dewatering, and ore stockpiling.

Redcastle will retain full control over key aspects of the development, including mine scheduling, grade control, environmental compliance, and the sale of refined gold. The collaboration aims to generate early cashflow through third-party toll processing, a strategy enabled by Terra’s mining expertise and low-CAPEX development approach.

The agreement is expected to be finalised into a definitive binding agreement in the second half of 2025, following the completion of updated Mineral Resource Estimates (MREs) and progress on permitting. Resource modelling and estimation work is said to be well advanced, with the company anticipating a JORC-compliant update in the coming weeks.

The project plan spans a two-year window, covering initial open-pit development and gold production to the targeted depth of 70 metres. Ground conditions at both QA and RR are currently conducive to non-blasting excavation or ripping techniques,.

This MoU is underpinned by recent permitting and drilling updates, which enhanced Redcastle’s position to transition its shallow gold assets toward near-term production.