Aim-listed Tertiary Minerals has signed a new joint venture (JV) agreement with local partner Mwashia Resources that will consolidate ownership of the Jacks, Mukai and Mushima North copper exploration licences into a new Zambian company, Newco, to be 90%-owned by Tertiary’s 96%-owned subsidiary Tertiary Minerals Zambia (TMZ) and 10% by Mwashia.
“This JV agreement is a win-win for Tertiary and Mwashia and a further example of the excellent working relationship we have developed with our local partner which enabled the recent agreement with KoBold Metals on the . . . Konkola West project.
“This new agreement simplifies our corporate structure in Zambia, brings forward our 90% ownership holding in all three of the licences and creates a vehicle by which the partners can better consider JV approaches from third parties on the licences,” Tertiary executive chairperson Patrick Cheetham said on February 26.
Currently all of the licences are held by Mwashia. Tertiary holds the right to a 90% JV interest in the Jacks licence and options to earn a 90% JV interest in each of the Mukai and Mushima North licences by meeting certain expenditures and making payments totalling $60 000 to Mwashia.
The JV agreement effectively relieves Tertiary of the expenditure obligations due under its option agreements on the Mukai and Mushima North licences, brings forward the $60 000 payment to Mwashia and puts ownership of the licences under a common entity controlled by TMZ.
Mwashia’s 10% interest will be carried by TMZ with carried costs being recovered as a priority from future profits.