Resolution Minerals Ltd (ASX:RML) has announced that it has secured a farm-in agreement with OZ Minerals Limited (ASX: OZL) that will see the later earn up to a 51% stake in the Wollogorang Copper Project.
The deal is designed to fast-track copper discovery at Wollogorang, and stipulates that OZ Minerals must spend $4.9 million over a five-year period, with exploration activities totalling $1.6 million over the initial two-year period, with a further $3 million expenditure over the 3-year balance.
OZ Minerals will also be required to pay Resolution $300,000 for a VTEM survey that was carried-out by the company in 2021.
Should Resolution elect not to participate in exploration spend past five years, OZ Minerals will have the option to earn up to a 75% interest through sole-funding of further exploration activity through to a Positive Final Investment Decision to Mine.
Resolution will retain operation rights at Wollogorang during the earn-in period.
Details of Wollogorang farm-in heads of agreementExploration at the Wollogorang Copper Project
The >4,000 km² Wollogorang project, located in the Northern Territory’s McArthur Basin, contains near-surface cobalt and copper resources, with a JORC 2012 compliant mineral resource of 1,200 tonnes of contained cobalt at its Stanton Cobalt Deposit
Resolution has undertaken a series of exploration activities including aeromagnetic surveys, induced polarisation surveys, and drill testing at copper-cobalt-prospective targets including Running Creek and Gregjo prospects.
“Resolution Minerals is very pleased to be a partnering with copper focussed producer OZ Minerals, to explore together for copper at Resolution’s Wollogorang Project”
Management comments
Resolution Minerals Managing Director Duncan Chessell said: “This is a very exciting development for Resolution’s shareholders. Copper is a fundamental ingredient to the renewable energy future of the planet. Resolution Minerals is very pleased to be a partnering with copper focussed producer OZ Minerals, to explore together for copper at Resolution’s Wollogorang Project in the Northern Territory.
The JV agreement with OZ Minerals, is recognition of the copper prospectivity of the Wollogorang Project. In particular the results of our recent air-borne VTEM geophysics survey that identified dozens of untested conductors and highlighted the sedimentary hosted copper potential of the project. The partnership with OZ Minerals has secured long-term funding, technical exploration collaboration and mining expertise to explore the current identified targets with potential to discover the next large-scale copper mine in the Northern Territory. The 25% carried interest for Resolution to decision to mine is a significant value add for RML shareholders without dilution.”
Images: Resolution Minerals Ltd
