Australia-based Buxton Resources and Independence Group (IGO) have signed an agreement to form a joint venture (JV) in relation with nickel tenements located in western Australia’s Fraser Range.
Under the deal, Buxton will receive $1.5m in cash for allowing Independence Group to buy 90% interest in the nickel deposits.
The deal also gives Buxton the exclusive right to explore and develop iron ore on the tenements, which includes the company’s Zanthus and Widowmaker tenements.
Buxton managing director Eamon Hannon said: “Buxton will receive $1.5m in cash and be free carried on all expenditure until a Decision to Mine is made on the Tenements, at which point Buxton will have a 10% interest in possibly a world-class nickel deposit.
"We are excited about the potential upside from this joint venture.
“The Fraser Range is a highly prospective ground package, however requires the significant financial resources of a leading diversified mining house like Independence Group to undertake aggressive exploration campaigns.
“The joint venture will enable Buxton to achieve considerable cost and administrative savings and help fast-track its highly promising flagship Double Magic Project in the Kimberley region of Western Australia.”
Both the companies have also agreed to also explore, develop and mine the selected tenements in relation to all minerals other than iron ore.
As per the deal, Buxton will be free-carried during exploration by IGO until such time as a decision to mine is made in respect of the tenements.
Buxton’s Zanthus Magnetite Project contains an initial inferred JORC Resource of 103.6 million tonnes at 26.5% iron, with a potential to expand the resource.
The Widowmaker Project is located 22km along strike of IGO’s Nova Project, within the Fraser Range Nickel Province.
Image: Location of the tenements in the Fraser Range, Western Australia. Photo: courtesy of Independence Group.