PERTH (miningweekly.com) – ASX-listed Hannans Reward has welcomed a joint venture partner to its Pahtohavare copper/gold project, in Sweden.
Swedish mining company Lovisagruvan AB could now earn a 35% interest in the Pahtohavare project by making a A$150 000 payment to Hannans, and by completing additional metallurgical testwork at the project area.
Lovisagruvan would also be responsible for undertaking drilling to improve the understanding of the oxide deposit and potentially increase the size, grade and category of the Joint Ore Reserves Committee-compliant resource, as well as to collect a sufficient quantity of bulk sample to complete metallurgical testwork to optimise the capital expenditure, operating expenditure and processing options for Pahtohavare.
The Swedish company could increase its stake in the project to 51% by lodging an exploitation concession application and environmental permit for the project, and providing a A$600 000 interest-free working capital facility to Hannans.
On the delivery of a feasibility study within four months of the grant of an exploitation concession, Lovisagruvan could increase its stake in Pahtohavare to 75%
Hannans would maintain a 25% free-carried interest in the project through to a decision to mine, at which point both parties would contribute to the costs of the operation.
“We are very pleased to have reached this agreement with Lovisagruvan,” said Hannans MD Damian Hicks.
“Their board is professional, experienced and successful. They know how to take a deposit into production and generate free cash flow. Hannans shareholders will benefit from this relationship by maintaining a 25% free-carried interest in Pahtohavare through to a decision to mine,” he added.
The Pahtohavare project was currently estimated to have an inferred mineral resource of 2.3-million tonnes, grading 1.7% copper and 0.6 g/t gold.