PERTH (miningweekly.com) – ASX-listed junior Hampton Hill Mining has signed an earn-in and joint venture (JV) agreement with fellow-listed Encounter Resources under which it would secure a 25% shareholding in the Millennium zinc project, in Western Australia.
Hampton could earn a 10% interest in the Millennium project by spending A$500 000 on exploration, and up to a 25% interest by spending A$2-million of the next A$3-million spent on exploration.
If the company elected to form a JV, Encounter would be issued with a strategic stake in Hampton, at no cost, which would be equal either to 5% or 15% of the company’s issued capital. Encounter would also have the right to appoint a director to the Hampton board, should the company obtain a 15% shareholding.
The Millennium zinc deposit was discovered in September last year, and confirmed by diamond drilling during the last quarter of 2014. The drilling to date has been sparse and limited to 3 km of strike, but provided confidence that extensive horizons of substantial width of zinc mineralisation occurred within the project area, Hampton said on Thursday.
The company said that the next requirement was further phases of drill testing to better define the target mineralisation and to give an initial indication of its economic significance.