JOHANNESBURG (miningweekly.com) – ASX-listed Stavely Minerals has agreed terms for an earn-in and joint venture (JV) agreement with Black Range Metals – a wholly-owned subsidiary of ASX-listed Navarre Minerals for Black Range’s exploration licence EL5425.
The licence is adjacent to Stavely’s Yarram Park project and surrounds the 100%-owned Stavely copper project, in western Victoria.
Stavely may earn up to an 80% interest in EL5425 in two stages. In the first earn-in stage, Stavely must sole fund $150 000 of exploration costs in two years to earn a 51% interest, following which it may elect to proceed to the second earn-in stage.
In this stage, Stavely must sole fund an additional $300 000 of exploration costs in the next three years to earn an additional 29% interest.
After the second earn-in period, both parties are to contribute to JV expenditure on a pro-rata basis relative to their participating interest or dilute their interest in accordance with a specified formula.
If a participant’s interest falls below 5%, that participant’s interest will convert to a net smelter return (NSR) royalty of 1%.
If a participant’s interest is converted to the NSR royalty, the other participant is granted an option to redeem the NSR royalty for the payment of $200 000 within two years of the conversion.
“We are delighted to enter into this agreement significantly expanding our access to exploration areas within the highly prospective Stavely Volcanic Belt.
“We believe the Stavely Volcanic Belt has the potential to host multiple alkalic copper/gold porphyry deposits and is significantly under-explored compared to the Lachlan Fold Belt in neighbouring New South Wales. We look forward to a strong working relationship with the Navarre management and technical staff,” Stavely MD Chris Cairns said.