Highlights

  • Scorpion Minerals has received a A$2 million option fee from Andel Resources for the Old Prospect gold project in WA.
  • The agreement gives Andel exclusive rights to potentially fund and operate Mining, processing, and transport activities.
  • The deal significantly strengthens Scorpion’s funding position ahead of planned development and drilling programs.

Overview

Scorpion Minerals Limited (ASX:SCN) has secured a A$2 million option fee from Andel Resources under a binding agreement covering the Old Prospect tenements within its Pharos Gold Project in Western Australia. The arrangement grants Andel the exclusive option to enter a right-to-mine structure where it would fund and manage mining and processing operations. The deal is strategically important as it reduces financial pressure on Scorpion while accelerating development plans. With additional exploration and drilling programs scheduled, the company is positioning Old Prospect as a key near-term production opportunity within its broader Murchison region gold strategy.

How Does the A$2M Option Fee Strengthen Scorpion’s Path to Production?

The A$2 million payment provides immediate funding support for Scorpion Minerals, improving its Liquidity position as it advances toward potential production at Old Prospect. Under the agreement, Andel Resources gains the exclusive right to enter a right-to-mine deal, where it would fund mining, hauling, and processing activities. In return, both parties would share profits on a 50/50 basis, creating a Capital-light development pathway for Scorpion. The structure also allows staged funding flexibility, including potential additional capital from unlisted options. This significantly reduces upfront development risk while enabling near-term project advancement.

Why Is Andel Resources’ Involvement Important for the Pharos Gold Project?

Andel Resources’ participation brings operational expertise and strong Downstream processing access through its affiliation with Gylden Resources, which operates the nearby Kirkalocka Processing Plant. This proximity enhances logistical efficiency, reducing transportation costs and enabling faster project execution. The agreement also opens the door for broader regional collaboration across Scorpion’s extensive Murchison landholding. With exploration, drilling, and mining studies set to commence, the Partnership strengthens Scorpion’s ability to accelerate resource development while targeting both near-term production and longer-term resource expansion across its gold portfolio.