PERTH (miningweekly.com) – ASX-listed Gindalbie Metals has earned its first 25% interest in the Mt Gunson copper/cobalt project, in South Australia, after spending its first A$1.37-million under a 2017 farm-in agreement.
Under the agreement with Torrens Mining, Gindalbie could earn up to a 75% interest in the project through staged expenditure.
Gindalbie on Wednesday said that it will now enter Stage 2 of the farm-in, progressing to a prefeasibility study on the project, and committing to spend A$2.5-million by the first half of 2019.
The Stage 2 expenditure would net the company an additional 26% interest in the project area.
Should Gindalbie elect to continue with the farm-in past Stage 2, the company could earn an additional 19% interest by spending a further A$2.75-million. At the completion of Stage 3, the company will have the option to purchase an additional 5% interest in the joint venture (JV) for A$1.5-million, taking its total share in the JV to 75%.