PERTH (miningweekly.com) – The Cloncurry Alliance, between ASX-listed Oz Minerals and Minotaur Exploration, has inked a joint venture (JV) heads of agreement with fellow-listed Sandfire Resources over a tenement package near Cloncurry, in Queensland.
The Sandfire tenements incorporate some 1 226 km2 of tenure immediately surrounding the existing Cloncurry Alliance JV assets, which include the Eloise and Jericho projects, supporting the hub concept being developed by the Alliance.
Under the JV agreement, the Cloncurry Alliance will invest A$1-million on exploring the Sandfire assets during the first year, after which the Alliance could earn an initial 51% interest in the tenements by sole funding a further A$3-million over the next two years.
The Alliance could then earn an additional 24% interest by spending a further A$4-million over the subsequent two years, gaining an ultimate 75% interest over a five-year period.
“Sandfire and Oz Minerals have been most cooperative in aligning with Minotaur in this tri-partite transaction as all parties see blue sky opportunities from a collaborative regional exploration approach in the vicinity of known mineralisation systems such as Eloise, Jericho, Altia and Maronan,” said Minotaur MD Andrew Woskett.
Oz Minerals will contribute all the required exploration funding up to A$4-million over the initial three years of the earn-in, with the Alliance partners contributing the remaining A$4-million on a 70:30 basis, giving Oz Minerals an ultimate 52.5% holding in the tenement, while Minotaur will hold a 22.5% interest.
Minotaur could elect to dilute its share to 20% and convert to a loan carry arrangement, similar to the one in place for the Jericho JV.