Australian firm Minotaur Exploration has signed a binding collaboration agreement for OZ Minerals' land in the Mt Woods area, an iron-oxide copper-gold prospective terrane.
Mt Woods in South Australia extends across an area of 5,000km² curved around the northern flank of the Gawler Range Volcanics.
The agreement excludes the Prominent Hill mine Mining Licence ML 6228.
OZ Minerals managing director and CEO Andrew Cole said: "This is a win-win for OZ Minerals and Minotaur.
"We get Minotaur's proven expertise in exploration and analysis and they get access to our vast repository of data."
Minotaur Exploration managing director Andrew Woskett said: "The Gawler Craton is a highly prospective formation, so we believe there could be many large discoveries yet to be made."
According to Minotaur, the agreement complements OZ Minerals' #3 position on the company's shareholder register.
Under the agreement, Minotaur will get access to OZ Minerals' database, as well as its physical components and would analyse them in order to identify new options for mineral discovery.
OZ Minerals will reimburse Minotaur for up to 80% of its time costs on the research work.
A $3m budget funded by the companies equally will allow for initial truthing of prospects to achieve 'proof of concept', with Minotaur serving as operator.
A new joint venture will later be formed, with the beneficial interest in each prospect allocated 80% and 20% to OZ Minerals and Minotaur respectively.
According to the companies, the latest agreement will offer the potential for multiple discoveries.
Image: Mt Woods area tenements held by OZ Minerals around Prominent Hill. Photo: courtesy of Minotaur Exploration Ltd.