PERTH (miningweekly.com) – Diversified major BHP has taken an option agreement over junior Encounter Resource’s Elliott copper project, in the Northern Territory.
The option agreement provides BHP with the right to enter into an earn-in and joint venture (JV) agreement for up to a 75% interest in the project by spending A$22-million over a ten year period.
On completing the earn-in, a JV will be formed and the parties will contribute funds based on their percentage interest, or the parties could choose to dilute their interest according to a standard dilution formula.
During the earn-in phase, BHP will act as manager of the project.
“New data has shone a light on the potential for copper to be found under shallow cover in the Northern Territory. Encounter moved early and aggressively to secure first mover opportunities in this new frontier,” said MD Will Robinson.
“We are delighted to be teaming up with BHP in the search for Tier 1 copper deposits at Elliott. We look forward to working alongside the highly respected BHP exploration team to validate this compelling opportunity.”