Listed resource company Canterbury Resources (ASX:CBY) and private explorer Syndicate Minerals are proceeding with the Morobe joint venture (JV) plan following completion of all due diligence and the payment of signing fees.
Canterbury Resources says under the JV, Syndicate has the opportunity to earn up to a 70% interest in its mineral exploration projects in the Morobe Province of Papua New Guinea by funding of up to US$20 million of staged exploration and assessment activities.
These tenements comprise both the Idzan Creek and Wamum Creek copper-gold deposits; the undrilled Waits Creek copper-gold prospect, the ‘high-grade’ Ekoato, Otibanda, and Waikanda gold-copper lodes, as well as the undrilled Bobanda copper-molybdenum-gold porphyry prospect; and the undrilled Yalua copper-molybdenum-gold porphyry prospect.
Canterbury reports key features of the Morobe JV agreement include US$5 million of exploration and assessment expenditure within 3 years of commitment, including a minimum of 1,000m of core drilling to earn a 40% JV interest; exclusivity and signing fees of $100,000 paid to Canterbury; and work programs to be managed by Canterbury.
Under the second stage of the earn-in process, Syndicate will need to spend the remaining US$15 million on exploration expenditure, including at least 2000m of core drilling, to earn another 30% interest in the project.
Canterbury Resources is an ASX-listed resource company focused on exploring potential tier-one copper-gold projects in the southwest Pacific, with a ‘strong’ portfolio of projects in Australia and Papua New Guinea that are considered prospective for porphyry copper-gold and epithermal gold-silver deposits.
Syndicate Minerals represents a private explorer based in Melbourne, Australia, which is a ‘substantial’ shareholder in Canterbury. The company currently holds over 11.546 million ordinary shares in Canterbury, representing 7.99% of its issued capital, as well as 5 million unlisted options expiring on 31 December 2025.
Write to Adam Drought at Mining.com.au
Images: Canterbury Resources Ltd