JOHANNESBURG (miningweekly.com) – ASX-listed Metals X, through its wholly owned subsidiary Austral Nickel, has entered into a farm-in and joint venture agreement with diversified miner Rio Tinto to earn an initial 51% interest in the Mount Davies exploration licence, in South Australia.

The agreement requires a minimum expenditure of A$500 000 within the first two years, and a further A$2-million within four years, if Austral Nickel wished to earn the 51% stake. Austral would retain management of the expenditure programme during the earn-in project.

The company could increase its interest to 70%, by sole funding exploration and development expenditure to the completion of a prefeasibility study. Rio Tinto could then elect to contribute, following the earn-in phase, to retain a 49% interest, and could elect to earn back up to 70% ownership, within 60 business days, after the delivery of a prefeasibility study, and through the sole funding of a bankable feasibility study.

The Mount Davies exploration licence encompasses the majority of the Giles Complex units proximal to the South Australian side of the Western Australia/South Australia border. The Giles Complex is considered to be highly prospective for nickel and copper sulphides, platinum group elements, and for nickel and cobalt limonite deposits.

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