PERTH (miningweekly.com) – ASX-listed Diatreme Resources has inked a binding memorandum of understanding (MoU) with fellow listed Metallica Minerals to form a joint venture (JV) at the Claremont copper/gold project, in Queensland.

Under the terms of the MoU, Metallica could earn a 25% interest in the project by sole funding A$300 000 in exploration by the end of this year, and could earn an additional 26% interest in the project by sole funding a further A$700 000 within 12 months of the minimum commitment date.

On meeting the earn-in requirements, Metallica could elect to sole fund the first A$1-million of the JV expenditure to earn a further 24% interest in the JV. If a decision to mine is taken, the parties would establish a development and mining JV and would negotiate the terms of a JV agreement.

Should Metallica wish to withdraw from the farm‐in prior to funding the Further Commitment Amount, Diatreme will have the right to purchase Metallica’s 25% interest and any associated mining data for $200 000.

“Clermont is a highly prospective project that has potential for the discovery of copper and gold deposits, having hosted historic copper mines,” Diatreme CEO Neil McIntyre said.

“Metallica has considerable in‐house expertise in large‐scale, porphyry-style deposits and will ensure we maximise the value of this noncore project for the benefit of our shareholders, while allowing us to focus on developing our flagship Galalar silica project.”

Metallica executive chairperson Theo Psaros on Thursday noted that the company had in late 2020 released its corporate strategy, with a clear focus on the development of the Cape Flattery silica sands project.

“Our strategy included a goal to obtain a second project that could be developed after Cape Flattery. Should our due diligence on Claremont have a positive outcome, we look forward to engaging a dedicated exploration team separate to the Cape Flattery silica sands team to progress this JV.”