PERTH (miningweekly.com) – ASX-listed Musgrave Minerals has struck a joint venture (JV) agreement with Cyprium Australia over the non-gold rights at the northern tenements of the Cue project, in Western Australia.
With an initial A$10 000 payment, Cyprium will have an exclusive 90-day option period in which to elect to earn an 80% interest in the non-gold interest. The company would be required to pay Musgrave an immediate A$250 000 and spend A$2-million on exploration within a two-year period, to obtain the 80% interest.
Musgrave will retain a 20% free-carried interest to the completion of a definitive feasibility study.
Musgrave MD Rob Waugh told shareholders that the transaction was an excellent outcome for shareholders and allowed the company to retain all of the gold rights, while advancing base metal targets through the discovery phase, and reducing Musgrave’s holding costs.
“This will enable the company to focus solely on gold exploration and development at the Cue project where Lake Austin North looks like developing into a significant gold system.”