Key Highlights

  • Red Hill can sole-fund up to $6 million of exploration at the Thomson project, in two stages.
  • Stage 1 is a $2 million program over 12 months, including at least 1,500m of diamond drilling across two targets.
  • Legacy Minerals retains 100% of the project through Stage 1 and holds a 25% interest if a joint venture is formed.
  • The Buy Back Right over Red Hill’s Royalty is extinguished only if Red Hill completes the Stage 1 program.

Legacy Minerals Holdings Limited (ASX:LGM) has entered a heads of agreement with Red Hill Minerals Limited (ASX:RHI) over its 100% owned Thomson Intrusion-Related Gold and Copper Project in north-western New South Wales. The announcement dated 11 November 2026 describes a funded exploration arrangement under which Red Hill can earn an interest in the project while Legacy focuses on its Mt Carrington gold-silver project.

The two-stage funding structure

Under Stage 1, Red Hill will sole-fund and manage a $2 million exploration program over 12 months on EL9190 and EL9194, including a minimum of 1,500m of diamond drilling to test at least two targets. In exchange, Legacy Minerals’ right to buy back the 1.5% net smelter royalty held by Red Hill over those tenements is removed.

Stage 2 allows Red Hill to earn a 75% interest in the Thomson Project by sole-funding a further $4 million of exploration over up to 48 months, including another minimum of 1,500m of diamond drilling. Together the two stages would commit up to $6 million of partner-funded exploration.

What Legacy keeps and gives up

Legacy keeps 100% of the project through Stage 1 and does not fund exploration during the farm-in period. On formation of a joint venture, Legacy would hold a 25% participating interest. The company said the arrangement allows it to keep its Capital and team focused on Mt Carrington while Thomson is advanced by a funded partner.

The buy-back right is only extinguished if Red Hill completes the Stage 1 program, so the royalty arrangement depends on Red Hill delivering the drilling commitment.

Targets and the drilling plan

The program will target drill-ready magnetic anomalies, including follow-up of a broad gold intercept of 377m at 0.1 g/t gold, without a cut-off, from 225m at Cut-A. The company has identified priority targets at Cut-A, Cut-AC and Cut-C.

The grade of the Cut-A intercept is low, and the thickness is broad, so the drilling will need to define higher-grade zones if the project is to move beyond the current stage. The outcome of Stage 1 will determine whether Red Hill continues to Stage 2.

Final Word

The heads of agreement gives Legacy a funded partner and keeps its interest intact through Stage 1, with a 25% stake on joint venture formation. Shareholders will be watching the results of the first 1,500m of drilling, and whether Red Hill proceeds to the farm-in that would take total exploration spending to up to $6 million.