OZ Minerals and Minotaur have signed a heads of agreement (HoA) with Sandfire towards the creation of the minerals hub.
The new Breena Plains JV provides a pathway for the Cloncurry Alliance to develop a minerals hub within the Cloncurry area.
It incorporates 1,226km² of tenure surrounding the existing JV assets, namely Eloise and Jericho.
Minotaur Exploration managing director Andrew Woskett said: “Sandfire and OZ Minerals have been most cooperative in aligning with Minotaur in this tri-partite transaction as all parties see a blue sky opportunity from a collaborative regional exploration approach in the vicinity of known mineralisation systems such as Eloise, Jericho, Altia and Maronan.”
The company has already identified a number of priority areas from Sandfire’s database for initial mineral investigation.
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Meanwhile, fieldwork planning will continue once the northern Australian monsoon season ends.
Minotaur Exploration business development and exploration manager Glen Little said: “Minotaur has progressively honed its investigative approach around Cloncurry over the past decade.
“With OZ Minerals’ ongoing exploration funding support, we expect the Breena Plains package will deliver the Alliance a library of prospecting options.”
Under the terms of the JV, the alliance is required to invest A$1m ($0.67m) in exploration during the first year.
It may then earn an initial 51% tenement interest by sole funding a further A$3m ($2.01m) in the next two years.
If the alliance furthers its expenditure to A$4m ($2.68m) over the subsequent two years, it may earn an additional 24% interest, requiring A$8m ($5.37m) of investment over five years to attain a maximum interest of 75%.