PERTH (miningweekly.com) – Copper/gold miner Aeris Resources has struck a deal with joint venture partner Kelaray, which is a subsidiary of fellow listed Argonaut Resources, to divest of its 70% interest in the Torrens exploration project in South Australia.
In return for its majority stake in the project, Aeris would receive a 2.5% net smelter royalty.
Aeris acquired its stake in the Torrens project following the acquisition of Round Oak Minerals in July 2022, and since then the company has been undertaking a review of its exploration priorities. From this review, it was decided that the Torrens project was no longer core to the business.
The transaction is subject to standard conditions precedent, including ministerial approval of the transfer of the tenement. As a result of the transaction, the carrying value of Torrens will be fully written off, resulting in an impairment of A$1.7-million, Aeris told shareholders.
Argonaut on Friday said that the agreement would see the company take a commanding land position in the highly prospective Olympic Dam domain near the eastern margin of the Gawler Craton.
Drilling at Torrens to date has confirmed the existence of a major iron-ore/copper/gold mineralising system beneath several hundred metres of sedimentary cover. However, the company noted that further drilling is required to intercept the modelled copper/gold mineralisation.