IGO Limited subsidiary IGO Newsearch has signed an agreement to purchase a 70% stake in the Fraser Range tenements in Western Australia (WA) from mining company Matsa Resources.

The transaction also includes the sale of the stake in the Symons Hill copper/nickel project.

Upon completion of the deal, Matsa will retain a 30% free carried interest in every tenement until a feasibility study is concluded or a decision is made on moving forward with the development and mining of a deposit on each of the tenements.

According to the agreed terms, IGO will have to make a A$600,000 cash payment and subsequently free carry Matsa for all exploration to the completion of feasibility studies or the decision to mine.

With the sale of non-core Fraser Range tenements, Matsa intends to focus on its Lake Carey gold project in Australia. The firm, however, will retain an interest in the potential upside at no cost.

Matsa executive chairman Paul Poli said: “This transaction enables IGO to have unfettered access to any part of Matsa’s Fraser Range landholding and explore the tenements to the fullest extent without a specific time or cost demands.

“It provides Matsa with a cash boost, as well as receiving the expert knowledge and exploration experience of the IGO team which is second to none. Matsa welcomes IGO’s exploration know-how and capabilities throughout its Fraser Range tenement holdings.”

Furthermore, the two firms plan to end existing agreements. Subsequently, they will proceed with a single all-encompassing agreement for Matsa’s stake in the Fraser Range tenements.