PERTH (miningweekly.com) – Junior Terrain Minerals has entered into an option agreement with Rembrandt Mining to acquire the Rembrandt gold project, in Western Australia.
The project comprises two granted exploration licences and two prospecting licences.
Terrain would be required to complete a minimum A$25 000 exploration spend across the Rembrandt project to facilitate a three-month exclusive option. If it was satisfied with the results of the drilling campaign, it could elect to proceed with the acquisition for A$1.
Rembrandt Mining would also receive a free-carried profit share from any mining operations across the project area, as well as a 1% net smelter return on all material mined at the site, other than gold.
Terrain executive director Justin Virgin said on Wednesday that through the low-cost option structure entered into with Rembrandt, Terrain had exposure to a high-grade project with significant exploration upside, without an onerous cost structure.
“Terrain will rapidly test the potential of the Monet prospect and determine if it presents a near-term cash flow opportunity for the company,” he added.
He noted that the company was also seeking similar opportunities that had the potential to provide significant shareholder value.