Terramin Exploration and ECR form JV to develop ISR copper project in Australia
Australia-based Terramin Exploration (TEL) has formed a joint venture (JV) with Environmental Copper Recovery (ECR) to develop an in-situ recovery (ISR) copper project near Kapunda, approximately 90km north of Adelaide.
Under the terms of the agreement, the parties will examine the probability to extract copper from shallow oxide ores in and around the Kapunda mine workings.
Based on the results of field leaching tests, a project feasibility study will be undertaken to produce copper at low capital and operating costs.
Terramin Australia CEO Martin Janes said: “This opportunity will give Terramin the ability to focus on its flagship, Tala Hamza zinc project and high-grade Bird-in-Hand gold project while leveraging off its portfolio of other valuable assets.”
The agreement allows ECR to earn a 50% interest in the project upon incurring a cost of A$2m on field trials and associated studies.
It can acquire an additional 25% interest by spending an additional A$4m, which will leave a 25% interest with TEL.
TEL will retain a 1.5% net smelter royalty on the JV area’s production.
ECR has also agreed to spend a minimum of A$300,000 within the first year and each subsequent year of the partnership.
The JV partners are engaged in estimating a resource with potential for exploitation via in-situ recovery.