PERTH (miningweekly.com) – Fieldwork at the Eloise copper joint venture (JV), in Queensland, is expected to resume shortly after the JV partners shook on a new financing plan.
Under the initial JV agreement, which was inked in 2014, Golden Fields Resources will earn a 50% interest in the project area from project owner Minotaur Exploration by spending A$6-million on exploration, over a four-year period.
In October last year, it was decided to bring forward the exploration work on Eloise by about 24 months, with drilling focused on the Artemis copper/gold/zinc prospect.
Work on the JV was temporarily suspended in March this year owing to financing limitations affecting Golden Fields, Minotaur said on Tuesday.
Golden Fields was issued with a notice of default, requiring the JV partner to remedy its funding situation by April 20.
Minotaur told shareholders that the JV partner had been given an extension in which to complete its JV payments. The payment plan would comprise several payments totalling A$3.3-million between May and mid-June. Once this payment plan had been completed, Minotaur would resume field exploration at Eloise.
As a consideration of the stay of termination, Golden Fields has agreed to reduce its holding in the tenement to 0%. Once a payment of A$2.3-million has been made, Golden Fields’ interest would increase to 25%.
Should the JV partner default on the payment plan prior to gaining its 25% interest, or should Minotaur elect to terminate the JV agreement, the company’s interest would be maintained at 0%.
On the completion of the entire payment plan, Golden Fields’ interest in the Eloise project would increase to 50%.