JOHANNESBURG (miningweekly.com) – ASX-listed Great Western Exploration has signed a farm-in agreement with Sandfire Resources to explore the company’s northern Yerrida copper tenements.
Through the agreement, Sandfire will farm into 11 of the company’s exploration licences, totalling 1 560 km2.
Sandfire will earn an initial 70% interest in the company’s northern Yerrida tenements by paying $500 000 in shares, committing to a minimum exploration spend of $1.7-million and sole funding exploration until the delineation of 50 000 t or more of in-ground copper resources.
Great Western MD Jordan Luckett said the agreement offered a clear pathway to production if a discovery was made.
Sandfire will solely fund exploration expenditure on the tenements to define a mineral resource of 50 000 t of contained copper or copper equivalent, with a second earn-in for 80% interest being achieved by Sandfire’s sole funding the completion of a feasibility study.
Both companies have pre-emptive rights to the other party’s interest where an interest has been offered for sale to a third party.
Luckett added that the agreement would enable one of Australia’s “most successful exploration teams” to explore the northern Yerrida area with the considerable knowledge, understanding and experience gained through the nearby discoveries of De Grussa and Monty.
“The opportunity to develop a long-term partnership with Sandfire may also prove invaluable if we make a discovery on our 100%-owned southern Yerrida areas, which the company considers to be equally prospective for volcanogenic massive sulphide and sedimentary hosted copper/cobalt,” he said.
If Sandfire wishes to withdraw prior to meeting the minimum expenditure, it is obligated to pay a cash consideration equal to the minimum expenditure amount, less the actual expenditure made on the tenements.