Alara Resources, via its wholly owned subsidiary Alara Oman Operations, has signed an agreement to form a new joint venture (JV) with South West Pinnacle Exploration (SWPE) in Oman.
Alara and SWPE are set to own equal shares in the new JV, which is expected to engage in drilling and mineral exploration services, as well as mine development activities.
The latest agreement builds on the previously established relationship between the two companies.
The new JV entity’s potential clients include other Oman-based mining companies and the GCC, including Alara’s other JV businesses.
SWPE is a provider of drilling and exploration services and currently possesses a fleet of 37 coring, reverse circulation (RC) and down-the-hole (DTH) rigs.
Alara noted that the signing of final documents and related transactions in support of the initiative will be conditional upon the regulatory requirements of Australia, India and Oman.
Alara’s other JVs in the region include Al Hadeetha Resources, Daris Resources and Awtad Resources, which hold five exploration licences spanning a total area of more than 1,100km².
In addition, the company acquired an interest in the Awtad copper-gold project last month, which is located adjacent to the Daris copper-gold development.
Alara has expanded its portfolio of copper assets in the country through the acquisition.
The agreement awards Alara an initial 10% interest in the project, as well as the right to increase to a total 70% shareholding in Awtad Copper.