Base metals miner First Quantum has entered into a memorandum of understanding with Australian junior Raiden Resources’ Mt Sholl nickel/copper/platinum group elements (PGE) project, in Western Australia.
“Mt Sholl is the largest, and currently only openpittable, nickel/copper/PGE sulphide resource in the district and may have the potential to unlock a district scale opportunity for development,” said Raiden MD Dusko Ljubojevic.
In terms of the agreement, First Quantum Australia will sole fund the project up to a decision to mine, with Raiden retaining a 30% free-carried interest up to the decision to mine.
To earn a 70% interest, First Quantum must spend at least $25-million over eight years on exploration activities and associated studies.
First Quantum will have a 12-month due diligence period, whereafter it will have an option to earn into the nickel/cobalt/PGE project through staged investments and milestone cash payments to Raiden. During the due diligence, First Quantum will pay Raiden $250 000 in cash and spend at least $1.5-million.
Raiden retains gold and lithium/caesium/tantalum rights over the project and its exploration programme for those minerals will continue.