PERTH (miningweekly.com) – ASX-listed Superior Resources has signed a farm-in and joint venture (JV) agreement with the Australian subsidiary of Canada’s Teck Resources.
Under the terms of the agreement, Teck Australia could earn a 70% interest in the Nicholson zinc-lead-copper project, in Queensland, by spending A$2.5-million by December 2018.
“We are delighted to have Teck as a partner, being one of the world’s largest zinc producers, to explore one of the company’s key zinc projects,” said Superior MD Peter Hwang.
“The finalisation of the agreement with Teck Australia is a significant milestone for the company and good timing as the company expedites the implementation of its zinc strategy.”
Under the JV agreement, and following the earn-in, each party would bear their respective percentage share of exploration, feasibility and development costs. Each party would also be entitled to their respective share of production.
If either JV party’s participating interest in the project falls below 10%, that interest would be converted to a 5% net profit royalty, capped at twice the deemed contribution to expenditure.
Hwang said that, with the finalisation of the agreement over Nicholson, Superior could focus its resources on the larger Victor project, also located in Queensland.
“We have committed an extensive amount of our efforts to secure an appropriate major for our zinc projects and we consider Teck to be the perfect partner to complement our objectives of discovering the next Mount Isa deposit.”