PERTH (miningweekly.com) – ASX-listed Venture Minerals has entered into a joint venture (JV) with a private group to earn up to a 90% interest in the Caesar nickel/copper project, in Western Australia.
Venture will pay owner Muggon Copper an initial A$25 000 in cash and A$25 000 in shares upon the signing of a heads of agreement, and should the company elect to drill on the Caesar project, a further A$25 000 in cash and A$25 000 in shares will be payable to Muggon.
Under the terms of the JV agreement, Venture will spend A$1.5-million on exploration within the first three years, to earn a 51% interest in the project, with A$300 000 having to be spent within the first year.
A further A$4.5-million will be spent on exploration in the following three years, to take Venture’s interest in the project to 75%.
Once this point has been reached, Muggon could elect to either contribute or dilute its shareholding to a 10% interest upon the completion of a bankable feasibility study or definitive feasibility study.
Once Venture has earned a 90% stake in the Caesar project, Muggon must elect to either contribute or dilute its interest to a 1% net smelter return.
Previous surface sampling at Caesar has identified copper and nickel sulphides, and the geochemical anomalies extend over some 3 km of strike.
“In assessing the potential of the Caesar project, we were particularly pleased to see nickel and copper sulphides already identified in surface samples, a substantial surface geochemistry response and a coincidental gravity high,” said Venture MD Hamish Halliday.
“We believe the Caesar project offers Venture a cost-effective exposure to an exciting style of mineralisation,” he added.