IRIS Metals (ASX:IR1) has executed a definitive farm-in agreement with Finley Mining to acquire up to a 100% stake in the latter.
The farm-in agreement follows on from a binding heads of agreement, which was executed in December 2025, as reported by Mining.com.au.
The company will fund US$1 million ($1.42 million) of exploration expenditure at the Finley Basin Project in Montana, US over two years and finalise a JORC-compliant inferred resource estimate to earn the initial 70% interest in Finley Mining.
After obtaining the initial interest, the two parties will orchestrate a joint venture structure, where Iris can further its stake in Finley with another 20% through spending an additional US$1 million of exploration expenditure over another two years.
If IRIS obtains 90%, Finley’s remaining 10% interest in the project will be converted into a 2% net smelter royalty for the project.
IRIS will be eligible to exit from the agreement after a minimum spend of US$250,000 on exploration costs at Finley Basin.
The company will be granted initial consideration for the right to farm-in by reimbursing the vendors for historical projects costs of $100,000 and issuing shares equal to $150,000.
IRIS will also issue shares up to $1 million by reaching inferred resource estimate milestones within five years of the agreement.
The company will issue $500,000 in shares for a resource of 850,000 tonnes @ greater than 0.68% tungsten trioxide, $250,000 in shares for a resource of 2.5 million tonnes @ greater than 0.50% tungsten trioxide, and $250,000 in shares for a resource of 5 million tonnes @ greater than 0.50% tungsten trioxide.
IRIS intends to begin drilling at the Finley Basin Project in Q3 2026, with permitting activities currently underway.
Phase one drilling will comprise over 4,500m of drilling to confirm and expand historical results returned by Union Carbide.
IRIS President of US Operations Matt Hartmann says the farm-in agreement is a “key achievement” for the company that provides access to a project that has returned ‘high-grade’ tungsten mineralisation.
“We’re eager to commence our work program, leveraging historical insights to define a modern JORC resource and explore untested targets across a large area,” Hartmann says.
“With local milling capabilities and local community support, Finley Basin offers a pathway for efficient development in a market hungry for secure tungsten supplies.”
IRIS Metals is an explorer with a suite of assets prospective for hard rock lithium in South Dakota.
Write to Maddison Elliott at Mining.com.au
Images: IRIS Metals
