PERTH (miningweekly.com) – ASX-listed explorer Minotaur Exploration has entered into a joint venture (JV) agreement with fellow-listed Andromeda Metals in the Northern Territory.
Under the terms of the agreement, Minotaur would sole fund up to A$5-million through a staged earn-in over a maximum six-year period, to earn a 75% interest in the Rover copper/gold project.
Minotaur will be obligated to spend a minimum of A$400 000 within nine months before withdrawing from the JV, with the company also holding the right to introduce a funding partner who could, in turn, earn a portion of Minotaur’s earned equity position.
On completion of Minotaur’s sole-funding commitments, either party could elect not to contribute to the proposed JV programme and budget, in which case their interest in the JV would be reduced in accordance with a standard industry dilution formula.
If any party dilutes to less than 5% equity interest in the JV, that party’s interest could be acquired by its JV partner.
The Rover project comprises two wholly owned tenements, on which Andromeda has completed extensive past exploration and has discovered four copper and gold deposits.
Minotaur will undertake geophysical targeting surveys as a component of its due diligence, with the company’s first on-ground exploration at Rover to start next week, with trial electromagnetic geophysical survey undertaken to determine if the method has application in the Rover Field.