PERTH (miningweekly.com) – ASX-listed Chalice Gold Mines has continued with its corporate activity spree, inking a farm-in agreement with fellow listed Traka Resources over the Latitude Hill nickel-copper-platinum group metals project.
Under the terms of the agreement, Chalice could earn a 70% interest in the project by spending A$10-million, with a minimum A$1-million commitment.
Once Chalice has earned an initial 51% interest in the project, by spending A$5-million within a three-year period, Traka could choose to maintain its 49% interest, or Chalice could increase its stake to 70% by spending another A$5-million within an additional three years.
The project covers 1 007 km2 and consists of five tenement applications on which seven priority conductors have previously been identified. None of these have been followed up with ground-based exploration, as the tenements are held under application.
Chalice and Traka said on Thursday that the companies would work together to progress the tenements to grant, and once granted, Chalice would undertake ground electromagnetic surveying over the priority targets to better define conductors.
Chalice this week also inked an agreement with Red Hill for a 70% interest in the West Pilbara gold project’s gold and base metals by spending A$3-million, with a minimum commitment of A$500 000 within the first 12 months.