JOHANNESBURG (miningweekly.com) – ASX-listed Sandfire Resources is purchasing the remaining 65% of joint venture (JV) partner Ventnor Resources’ Thaduna/Green Dragon copper project for $3-million.
Sandfire will pay Ventnor $2-million in shares, a further $1-million if it decides to mine the project and a 2% net smelter return royalty of up to 90 000 t of copper and an ongoing 1% royalty on further production.
Ventnor entered a JV with Sandfire over Thaduna/Green Dragon in December 2013.
At the time, Sandfire paid Ventnor $3-million for an initial 35% interest in the project with the ability to earn up to 80% under the terms of the JV.
The Thaduna/Green Dragon project is located 40 km east of Sandfire’s flagship DeGrussa project and represents the largest known copper resource in the Doolgunna-Bryah basin region outside of DeGrussa.
The deal will allow Ventnor to maintain an interest in the project while releasing funds for its Black Dragon copper/nickel prospects north-east of Kalgoorlie.