Johannesburg (miningweekly.com) – ASX-listed ABM Resources has agreed to extend the period for Thunderbird Metals raising a minimum of $0.5-million to March 31, for the joint venture (JV) exploration agreement of the North Arunta project, in the Northern Territory.
Thunderbird will earn a 51% interest in the project by spending $2.5-million on expenditure carrying out exploration on the project over a 2.5-year period.
According to the JV, Thunderbird must sole-fund $6.5-million over a four-year period to earn a 70% interest in the project.
“This JV will accelerate the potential for a major discovery at North Arunta, while ABM focuses on its Tanami projects,” ABM MD Matt Briggs said.
Thunderbird will be able to earn an additional 19% in the project by spending an additional $4-million on expenditure carrying out exploration within two years of the start of the JV.
ABM will retain a 30% free-carried interest to completion of a bankable feasibility study and a decision to mine.
At the point of decision to mine, ABM can elect to convert its 30% share to a 1.5% net profit royalty.