East Star Resources (LSE:EST) has signed a binding heads of agreement with Nova to establish a joint venture covering the Rulikha copper project in East Kazakhstan.

Under the proposed structure, Nova will be able to earn an interest of up to 75% or 65% in the project through a series of staged milestones, while East Star will retain an interest of at least 25%.

Local mine developer Orion has been appointed as operator of the project. The arrangement is structured so that Nova and Orion will fund the work required to advance Rulikha, allowing East Star to retain an interest without providing further funding for those activities.

Nova and Orion to fund development work

Nova and Orion will fund resource drilling, feasibility studies, permitting and construction at Rulikha at no additional cost to East Star.

The two companies previously developed the Karshyga and Kamkor copper mines, which subsequently entered profitable operations.

East Star said the joint venture structure will allow it to direct its own capital towards exploration activities and its other ventures, including its joint venture with Endeavour Mining.

Rulikha drilling programme planned for Q3 and Q4 2026

East Star has also received drilling approval for the principal Rulikha licence area. A drilling programme is planned for the third and fourth quarters of 2026.

The programme will form part of the work to advance the project through resource definition and subsequent development stages under the joint venture arrangement.

East Star Resources is a London-listed gold and copper exploration and development company focused on Kazakhstan. Its activities target volcanogenic massive sulphide and polymetallic deposits.

The company’s portfolio of copper assets in East Kazakhstan also includes the Verkhuba-Xinhai joint venture, with East Star using partnerships with local operators to advance projects through exploration and development.