PERTH (miningweekly.com) – Brazilian miner Vale has entered into a $6,03-million farm-in agreement with Australia’s Royalco Resources to explore the Gambang porphyry copper project, in the Philippines.

The agreement allows for an exploration programme over three years, and includes drilling at the prospective Cableway prospect.

Once the exploration programme has been completed, and Vale exercises its options to acquire the Gambang project, the Brazilian miner would pay Royalco $5-million, as well as a royalty of between 1,3% and 1,5% on future production.

Royalco holds a portfolio of ten royalty interest, as well as a number of exploration interests in the Philippines.

Royalco executive chairperson Peter Topham said that the agreement with Vale was the type of transaction which matched the company’s aims of working with a quality mining house to bring forward exploration opportunities, recoup exploration investment, and crystallise potentially meaningful royalty streams.

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