PERTH (miningweekly.com) – Metals explorer Carawine Resources has struck a farm-in and joint venture (JV) agreement with iron-ore miner Fortescue Metals over its eastern Paterson project tenements, in Western Australia.
Under the terms of the agreement, Fortescue would pay an initial A$125 000 in cash and would spend a further A$500 000 on exploration at the Lamil Hills, Trotman South and Sunday tenements, hunting for copper, gold and base metals, over an 18-month period.
The miner would have the right to earn a 75% interest in the tenements by spending a total of A$6-million on exploration over two stages, the first of which would see Fortescue earn an initial 51% interest after a A$1.5-million spend, and a further 24% interest after an additional A$4.5-million spend.
Carawine MD David Boyd on Wednesday said that the agreement with Fortescue represented an opportunity for the company to realise the significant potential of its Paterson project tenements.
“With the addition of Fortescue as a partner in the Paterson, we now have two major resource companies funding exploration at our Paterson tenements. This agreement gives Fortescue access to under-explored tenements over highly prospective ground.”
Boyd said that the transaction also ensured that Carawin was well positioned to share in the benefit of any discoveries, with Fortescue well placed to support a potential development, should the exploration activities be successful.