Eastern Iron takes an option in cobalt
PERTH (miningweekly.com) – ASX-listed Eastern Iron has entered into an option agreement with junior Heavy Metal Exploration to acquire an interest in the Mt Cobalt Corridor project, in Queensland.
Eastern Iron would be required to pay a call option fee of A$10 000 by September 11 to have an exclusive option to acquire an initial 25% interest in the project for a A$150 000 cash payment and the issue of A$200 000 worth of ordinary shares, subject to shareholder approval.
Once Eastern Iron has acquired its initial interest, the two parties would launch a farm-in arrangement over the project area, which could see Eastern Iron increase its stake in the project by an additional 35%, by spending A$650 000 on exploration under the Stage 1 earn-in, over a 24-month period.
The Stage 2 earn-in would see the company spend an additional A$1.5-million within the following 36 months, in order to acquire the remaining 40% in the project.
Within 30 days of the approval date, Eastern Iron and Heavy Minerals must negotiate a royalty deed, which will include a 0.5% net smelter return royalty for Heavy Metal on all the copper produced at the project area, capped at 30 000 t of copper equivalent, with the royalty not payable when copper prices are below $6 000/t.
The company will also have the right to buy back the royalty for A$1.5-million.
The project area under the call option covers 161 sub-blocks with a diverse geology adjacent to, and extending out from known cobalt mineralisation, along with cobalt anomalies noted within the tenements.
Comments
The
content
you are trying to access is only available to subscribers.
If you are already a subscriber, you can Login Here.
If you are not a subscriber, you can subscribe now, by selecting one of the below options.
For more information or assistance, please contact us at subscriptions@creamermedia.co.za.
Option 1 (equivalent of R125 a month):
Receive a weekly copy of Creamer Media's Engineering News & Mining Weekly magazine
(print copy for those in South Africa and e-magazine for those outside of South Africa)
Receive daily email newsletters
Access to full search results
Access archive of magazine back copies
Access to Projects in Progress
Access to ONE Research Report of your choice in PDF format
Option 2 (equivalent of R375 a month):
All benefits from Option 1
PLUS
Access to Creamer Media's Research Channel Africa for ALL Research Reports, in PDF format, on various industrial and mining sectors
including Electricity; Water; Energy Transition; Hydrogen; Roads, Rail and Ports; Coal; Gold; Platinum; Battery Metals; etc.
Already a subscriber?
Forgotten your password?
Receive weekly copy of Creamer Media's Engineering News & Mining Weekly magazine (print copy for those in South Africa and e-magazine for those outside of South Africa)
➕
Recieve daily email newsletters
➕
Access to full search results
➕
Access archive of magazine back copies
➕
Access to Projects in Progress
➕
Access to ONE Research Report of your choice in PDF format
RESEARCH CHANNEL AFRICA
R4500 (equivalent of R375 a month)
SUBSCRIBEAll benefits from Option 1
➕
Access to Creamer Media's Research Channel Africa for ALL Research Reports on various industrial and mining sectors, in PDF format, including on:
Electricity
➕
Water
➕
Energy Transition
➕
Hydrogen
➕
Roads, Rail and Ports
➕
Coal
➕
Gold
➕
Platinum
➕
Battery Metals
➕
etc.
Receive all benefits from Option 1 or Option 2 delivered to numerous people at your company
➕
Multiple User names and Passwords for simultaneous log-ins
➕
Intranet integration access to all in your organisation