ASX-listed Alchemy Resources has signed a binding option agreement with private miner Newcam Minerals that could see the experienced Western Australian iron-ore producer earn up to a 60% stake in Alchemy’s Bryah iron-ore assets.

Under the terms of the deal, Newcam will pay A$500 000 for a six-month option while it conducts legal and technical due diligence, with a further A$500 000 payable upon exercising the option.

The agreement covers Alchemy’s Valley Bore and Old Highway prospects, with Alchemy retaining a 40% interest, free carried to a decision to mine.

In addition to the option payments, Newcam will subscribe for 10-million Alchemy shares at A$0.025 each – a 127% premium to the company’s last traded price – providing an immediate injection of funding strength for the junior explorer.

Alchemy CEO James Wilson described the agreement as a pivotal milestone for the company. “Subject to completion and the exercise of the option, the proposed transaction represents a truly transformative opportunity for Alchemy,” he said.

“The investment by Newcam, including the A$500 000 option payment and further A$500 000 on exercise, together with a A$250 000 placement at a significant premium to our current share price, provides both immediate funding strength and validation of our strategy. For a junior company such as ours, this is a game-changing moment.”

Wilson added that the partnership not only accelerated the advancement of Alchemy’s iron-ore assets but also enabled the company to maintain meaningful exposure to future project upside. “It not only accelerates the advancement of our iron-ore assets, but it also positions Alchemy to retain a 40% interest in the Bryah project as Newcam funds the pathway toward feasibility and, ultimately, a decision to mine. This partnership further strengthens our balance sheet, enhances our exposure to growth, and underscores the quality of the opportunities ahead for our shareholders.”

During the option period, Alchemy plans to complete a maiden drill programme at the Valley Bore prospect in the December quarter to test hematite exposures and advance geological understanding of the project. Newcam, which has a track record of mine development and operation in the Mid-West, will assume operatorship of the iron-ore assets once the option is executed.

Newcam previously took its Mt Gould iron-ore mine from development through to production and export via Geraldton port. With its own mining and haulage fleet, the company is described as a fully integrated mine operator, ready to deploy its equipment and expertise on new projects.

The two parties have agreed to finalise a definitive agreement within six months, with terms expected to remain materially consistent with the current option framework.