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FIRB approves Shandong investment in Centrex

11th October 2013

By: Esmarie Iannucci

Creamer Media Senior Deputy Editor: Australasia

  

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PERTH (miningweekly.com) – The Foreign Investment Review Board (FIRB) has approved the first stage of the Goulburn base metals joint venture (JV) between ASX-listed Centrex Metals and China’s Shandong 5th Geo-Mineral Prospecting Institute.

The JV agreement, executed in April, would see Shandong fund an initial A$2-million for base metals exploration over the Goulburn project area, in New South Wales, in return for an initial 35% interest.

If the exploration proved successful, Shandong had the option to earn an 80% interest in the project by sole-funding all study and project capital cost through to production, leaving Centrex with a 20% free-carried interest to production.

FIRB has now approved the first stage of this JV agreement, which meant that Shandong could earn its initial 35% interest in the project.

The JV covers two adjacent exploration licences some 20 km south of Goulburn. After completing an independent geological review and field reconnaissance, Centrex commissioned an airborne magnetic and gravity survey over the tenement area, generating numerous priority exploration targets.

Once the funds from Shandong have been received, Centrex would start an initial diamond drilling programme over the identified base metals targets.

Edited by Creamer Media Reporter

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