JOHANNESBURG (miningweekly.com) – Magnesite and graphite developer Archer Exploration has executed a legally binding farm-in and joint venture (JV) agreement with Cobalt Bull, covering Archer’s noncore exploration assets in South Australia’s mid-north region.
Under the terms of the JV agreement, Cobalt Bull will pay Archer A$200 000 cash and sole fund A$2-million on exploration and other related exploration activities at Burra North (cobalt and manganese), Spring Creek (copper) Napoleons Hat (gold) and Bull Hills (gold and copper), to earn a 75% interest.
Cobalt Bull, a private Australian mining company whose management is also associated with the development of the Mount Morgan gold/copper project in Queensland, and the Peko gold/cobalt/copper project in Northern Territory, must spend the A$2-million within three years to earn the 75% interest.
The tenements being farmed out by Archer exclude the company’s core graphite and magnesite tenements at Leigh Creek and on Eyre Peninsula, in South Australia.
“The execution of the JV agreement will allow us to continue to focus on our prime objective, the development of the Campoona graphite project and the Leigh Creek magnesite project,” Archer chairperson Greg English commented.
He added that the JV secured a significant and non-diluting on-ground exploration spend across these assets, while allowing Archer shareholders to maintain exposure through its 25% interest to any exploration and discovery success by Cobalt Bull.