JOHANNESBURG (miningweekly.com) – ASX-listed junior Buxton Resources has granted fellow listed Independence Group (IGO) the sole and exclusive right to acquire a 90% interest in the Zanthus and Widowmaker tenements, in the Fraser Range, Western Australia, for $1.5-million in cash.
Under a joint venture (JV) announced on Wednesday, IGO and Buxton will explore, and if warranted, develop and mine the tenements in the Fraser Range, except for iron-ore, which remains with Buxton.
Buxton will be free-carried by IGO until a decision to mine is made. Buxton may elect to either participate in development by contributing capital pro rata based on its JV interest, offer its 10% interest to IGO at market value, or dilute to a net smelter return royalty.
IGO will undertake an aggressive exploration campaign for nickel deposits in the Fraser Range. The Zanthus nickel-copper project is located about 60 km along strike from IGO’s Nova nickel-copper-cobalt project. The Zanthus magnetite project contains an initial inferred Joint Ore Reserves Committee-compliant resource of 103.6-million tonnes at 26.5% iron.