OZ Minerals has signed an agreement with Resolution Minerals to acquire a 75% stake in the Benmara Project in the Northern Territory, Australia.
The companies have signed a multi-year farm-in and joint venture agreement to speed up the search for copper discoveries on the Resolution’s Benmara project.
OZ Minerals, a copper focussed mid-tier mining company, will acquire the stake in the project from Xavier Resources, a wholly owned subsidiary of Resolution Minerals.
The project, located in the South Nicholson Basin in the Northern Territory, comprises mineral exploration tenements, EL31287, EL32228, EL32229, EL32849, EL32850, EL32883 and EL33059.
Resolution Minerals CEO Christine Lawley said: “We are very pleased to announce this new exploration funding agreement with copper focused producer OZ Minerals for the Benmara Project in the underexplored South Nicholson Basin, Northern Territory.
“The new farm-in and JV agreement with OZ Minerals, is validation of Resolution’s exploration strategy, which identified the potential for large-scale base metal deposits analogous to the worldclass McArthur River Mine in this under-explored region during the 2021 field season.”
OZ Minerals will have to carry out exploration activities of $1m over an initial 2-year period and additional $3m expenditure over a 3-year period to gain a 51% stake in the Benmara project.
A joint venture agreement is expected to be executed, upon completion of the acquisition of a 51% stake in the project.
Resolution will continue to own a 100% interest in the project, if OZ Minerals fails to spend $4m within the 5-year period.
Once a positive financial investment decision (PFID) is reached on the project, Resolution is eligible elect to contribute at 49% interest or 25% interest in the joint venture.
OZ Minerals is allowed to acquire a 75% interest in the Benmara Project, by spending at least $1m per year over a further 5- year period to PFID.
