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Argonaut takes greater stake in Zambian project

Argonaut takes greater stake in Zambian project

Photo by Bloomberg

22nd May 2014

By: Esmarie Iannucci

Creamer Media Senior Deputy Editor: Australasia

  

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PERTH (miningweekly.com) – Mineral explorer Argonaut Resources has upped its shareholding in the Lumwana West copper project, in Zambia, increasing its stake from 51% to 90%.

The ASX-listed explorer reported on Thursday that it had met its second-phase expenditure target of $2.4-million, and made a final payment of $1-million to project vendor Mwombezhi Resources.

The majority shareholding by Argonaut facilitated a recently announced option agreement with a subsidiary of major Antofagasta to explore and develop the Lumwana West project.

Under the terms of that agreement, Antofagasta could earn a 70% share in the project by spending $18.9-million on exploration, over two stages, and by completing a feasibility study on the project.

“The acquisition of a 90% interest in the Lumwana West project is a significant milestone for Argonaut. The company has completed its earn-in well ahead of schedule, despite tough market conditions,” said Argonaut director Lindsay Owler.

Owler noted that with the Antofagasta deal in place, the Lumwana West project was fully funded and on a development timeline which, subject to continued technical success, could see the project’s value increase exponentially.

Edited by Creamer Media Reporter

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