Copper producer Sandfire Resources has signed agreements to acquire an 85% interest in the Red Bore copper project in Western Australia (WA).
The Red Bore project is located adjacent to the copper producer’s DeGrussa copper-gold mine in WA.
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It comprises a 2km² granted mining lease and was previously subject to a joint venture (JV) agreement between Australian firm Ora Gold and William Richmond.
Under the terms of the agreement, Sandfire will make a cash payment of A$1.25m ($0.87m) to Richmond and would grant him a 1.25% net smelter royalty (NSR) over the minerals produced at the Red Bore project.
In a press statement, Sandfire Resources stated: “Upon Sandfire reaching a decision to mine, Ora Gold has a put option to sell its retained 15% interest.
“If Ora Gold does not exercise its put option, Sandfire must continue to cover Ora Gold’s share of any cash call by way of interest-free loans repayable from 75% of Ora Gold’s free cash flow from its share of any minerals produced from Red Bore.”
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By GlobalDataSandfire Resources managing director Karl Simich said that the agreements with Ora Gold and Richmond ‘consolidate ownership of the strategically located tenement’.
He added: “The Red Bore Project will be incorporated within our near-mine exploration programs at DeGrussa and explored using our leading geochemical and geophysical exploration methodologies.”
In May 2018, Sandfire Resources acquired a 7.7% interest in Adriatic Metals following the completion of a subscription of shares.
