OZ Minerals has entered what it calls an ‘exploration alliance’ with Australian exploration firm Red Metal, giving it the option to fund six exploration projects over the next two years.
The alliance is expected to increase OZ Minerals’ exploration footprint in Australia.
As part of the alliance, the company will fund mutually agreed, proof-of-concept programmes on Red Metal’s Yarrie and Nullarbor projects in Western Australia and Gulf, Three Ways, Lawn Hill and Mount Skipper projects in Queensland.
OZ Minerals Exploration and Growth head Richard Holmes said: “This alliance is borne from the experience the companies have gained working together on the Punt Hill project near the Carrapateena copper project, currently in construction in South Australia.
“The projects selected for the Alliance offer a rare opportunity to gain access to large land holdings in terranes with significant mineral endowment and frontier terranes with low cost programmes to test new concepts.
“Many of these areas are under cover and enable OZ Minerals to provide its technical expertise for exploring under cover to support our partner.”
For the first two years, OZ Minerals will fund $8.05m in exploration and $1.8m in initial cash payments and will have access to between 51% and 70% of a project’s revenue.
The company can also withdraw from individual projects within the alliance if they fail to meet its value expectations.
OZ Minerals has several earn-in agreements with explorers in Australia, Europe and the Americas as part of its growing portfolio.