Australian company Carnaby Resources has signed a farm-in and joint venture (JV) agreement with Rio Tinto subsidiary Rio Tinto Exploration (RTX) to earn a 51% interest in the latter’s Devoncourt Project in Australia.
Carnaby expects the acquisition to add a high-quality advanced exploration target while expanding the land position of its Greater Duchess Copper-Gold Project in Mt Isa, Queensland.
Under the agreement, Carnaby will solely fund A$5m ($3.28m) for exploration at the property by 1 August 2028.
The company is required to make an upfront payment of A$100,000 to RTX, either in cash or fully paid ordinary shares.
As part of the expenditure commitment, Carnaby will also complete a minimum of 4,000m of diamond core and/or reverse circulation drilling. It will also undertake a A$500,000 minimum expenditure commitment.
Upon achieving the farm-in requirements by Carnaby, RTX may either or not elect to contribute to JV expenditure.
How well do you really know your competitors?
Access the most comprehensive Company Profiles on the market, powered by GlobalData. Save hours of research. Gain competitive edge.
Your download email will arrive shortly
Not ready to buy yet? Download a free sample
We are confident about the unique quality of our Company Profiles. However, we want you to make the most beneficial decision for your business, so we offer a free sample that you can download by submitting the below formBy GlobalData
Carnaby managing director Rob Watkins said: “The Devoncourt farm-in with RTX gives Carnaby a unique opportunity for a junior to explore a Tier 1-sized target within a world-class mineral field and jurisdiction.
“We believe that in conjunction with the highly successful ongoing exploration and potential development of the Greater Duchess Project, Devoncourt represents a highly accretive addition to the existing exploration targets within the Greater Duchess area.”
Encompassing 838km² of exploration tenure, the Devoncourt Project includes the Wimberu granite, which is said to be a potential source of iron ore copper-gold mineralised fluids.
The project comprises several magnetic and gravity highs including the Wimberu Prospect.