Orbminco (ASX:OB1) has signed a non-binding heads of agreement with Sarama Resources (ASX:SRR) to divest its 80% interest in the Mt Venn Project.
Formerly known as Woomera Mining, Orbminco says the divestment aligns with the company’s new focus on its Bronze Fox Project in the Mongolian South Gobi Copper Belt.
Cazaly Resources (ASX:CAZ) owns the remaining 20% as part of the Mt Venn joint venture, which comprises exploration tenements covering some 400km2 and is located 125km northeast of Laverton in the Eastern Goldfields Region of Western Australia.
Orbminco’s Chair Ian Gordon says the sale of the 80% stake in Mt Venn, when completed, “will be a win-win for both businesses, with Sarama able to complement their Cosmos Project with another quality asset in the region and Orbminco retaining continued leverage to Mt Venn, via its shareholding in Sarama”.
As part of the divestment, Orbminco has granted Sarama a right of exclusivity on and from the date of execution of the heads of agreement and ending after four months or the date of execution of a binding agreement.
In return for exclusivity, Sarama has agreed to make a non-refundable cash payment of $20,000 to Orbminco. Sarama also agreed to make payments on behalf of Orbminco for annual exploration licence government rental fees totalling $39,900 to ensure continuity of tenure for two of the exploration licences the subject of the transaction.
Orbminco is exploring for copper and gold in Mongolia and battery metals (lithium nickel, copper, and PGEs) and gold in the Yilgarn and Pilbara Cratons of Western Australia.
The Mt Venn project lies 40km west of Gold Road Resources’ (ASX:GOR) and Gold Fields’ (NYSE:GFI) Gruyere Gold Mine.
Write to Adam Orlando at Mining.com.au
Images: Orbminco & Cazaly
