Eagle Mountain Mining (ASX:EM2) has signed a binding agreement with Nittetsu Mining to create a joint venture for the Oracle Ridge Project in Arizona, US.
Nittetsu will stake an 80% interest in the project, while Eagle Mountain maintains 20% ownership.
Nittetsu will manage the joint venture project, with upcoming exploration activities to include a 6,000m drilling program, a trial geophysical survey, the re-establishment of operation surface infrastructure, and a handover.
Drilling will test mineralised extensions proximal to the current resource area, which hosts an estimate of 28.2 million tonnes @ 1.35% copper, 11.06 grams per tonne silver, and 0.16g/t gold.
The geophysical survey intends to test how effective induced polarisation techniques would be at the Oracle Ridge Project.
Nittetsu will cover all expenditures for up to US$20 million ($27.87 million), with US$3.5 million planned in the near term comprising a US$2.5 million debt payment to Vincere Resource Holdings and US$1 million to Marble Mountain Ventures to exercise the option agreement regarding the purchase of the Oracle Ridge mine.
The joint venture will be formally established following these payments.
Eagle Mountain Executive Director Fabio Vergara says the company first “embarked on this journey 10 months ago with a simple idea and a healthy dose of optimism”.
“Through patience, perseverance, and a bit of creativity, we canvassed a deal that was acceptable to all parties. We are delighted by this outcome,” Vergara says.
“As a 20% partner, we look forward to seeing more positive results at Oracle Ridge including significant advances towards restarting operations.
“Looking ahead, the Company will assist Nittetsu during the handover period, redouble its efforts on evaluating new project opportunities, and assess next steps at Silver Mountain.”
Nittetsu General Manager of the Overseas Mineral Resources Business Shinichiro Mita says the project has a “high-grade copper resource, existing infrastructure, and significant scope for future development”.
“We are eager to commence technical activities with the goal of bringing the mine back into production,” Mita says.
“Nittetsu and Eagle Mountain have a strong working relationship, and we are pleased to be partnering together on this attractive asset.”
Eagle Mountain is a copper-gold explorer focused on its Oracle Ridge and Silver Mountain projects in the US.
Write to Maddison Elliott at Mining.com.au
Images: Eagle Mountain Mining
