SER partners with Sumitomo on joint exploration at Bulimba Gold Project

Core Viewpoint - Strategic Energy Resources (SER) has entered a non-binding term sheet for an exploration joint venture with Sumitomo Metal Mining Oceania (SMMO) for the Bulimba Gold Project in Queensland, Australia [1][4]. Group 1: Joint Venture Details - The agreement allows Sumitomo to earn up to an 80% interest in the Bulimba Gold Project through an expenditure of A$6 million (approximately $4.02 million) and 7,500 meters of drilling over five years [2]. - An additional 10% interest can be earned by completing a definitive feasibility study (DFS) [3]. - Sumitomo is required to reimburse SER A$100,000 within 14 days of executing the agreement for prior expenditures [5]. Group 2: Financial Commitments - Sumitomo must commit to a minimum expenditure of A$600,000 within the first 12 months, after which it may withdraw, allowing SER to retain full ownership [5]. - In the first earn-in phase, Sumitomo can acquire an initial 51% interest by spending A$3 million over three years, which must include at least 2,500 meters of drilling [5]. - In the second earn-in phase, Sumitomo can increase its stake to 80% by investing an additional A$3 million over two years, which must include a minimum of 5,000 meters of drilling [6]. Group 3: Project Significance - The Bulimba project is located in a region with over 20 million ounces of gold endowment, indicating significant mineral potential [3]. - The project encompasses four exploration licenses, with an option to include additional adjoining tenements [4]. - If either party's interest falls below 10%, it will convert to a 2% net smelter return royalty [7].