Venus Metals has win-win at Youanmi JV with exploration costs covered and strong results

Venus Metals Corporation Limited (ASX:VMC) has elected for JV partner Rox Resources Limited (ASX:RXL) to cover all of its 30% exploration contribution to the OYG Joint Venture at Youanmi up until a decision to mine is made.

The funding will be by way of a limited-recourse interest-free loan provided by Rox Resources for Venus' share of the ongoing costs.

This loan is secured against Oz Youanmi Gold Pty Ltd's interest in the OYG Joint Venture with Oz Youanmi Gold being a wholly-owned subsidiary of Venus.

Venus is also buoyed by strong results returned from drilling at the JV in Western Australia.*Increasing interest*

On June 11, Rox Resources increased its interest in the OYG JV to 70% for $2 million cash with Venus retaining 30%.

Venus will also receive another $1 million in Rox shares at 2.4 cents per share, subject to shareholder approval at a proposed general meeting scheduled in August.

If approval is not received by shareholders, the transaction will be in cash.