Stavely Minerals has entered an earn-in and joint venture (JV) agreement with Navarre Minerals’ subsidiary Black Range Metals for its exploration licence EL5425, which is located adjacent to Stavely’s Yarram Park Project in Australia.
The licence also surrounds the 100%-owned Stavely Copper Project in western Victoria. Under the deal, Stavely is expected to earn up to an 80% interest in EL5425 in two stages.
In the first earn-in stage, the company has to invest $150,000 for exploration costs in two years to earn a 51% interest, with it then having the option to proceed to the second earn-in stage.
In order to earn a further 29% interest, Stavely will spend an additional $300,000 of exploration costs as part of the second earn-in stage over the next three years.
Upon completion of the second stage, the companies would contribute to joint venture expenditure on a pro-rata basis relative to their participating interest or dilute their interest in accordance with a specified formula.
Stavely Minerals managing director Chris Cairns said: “We are delighted to enter into this agreement significantly expanding our access to exploration areas within the highly prospective Stavely Volcanic Belt.
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“We believe the Stavely Volcanic Belt has the potential to host multiple alkalic copper-gold porphyry deposits and is significantly underexplored compared to the Lachlan Fold Belt in neighbouring New South Wales.
“We look forward to a strong working relationship with the Navarre Minerals management and technical staff.”
If a participant’s interest falls below 5%, then the participant’s interest will convert to a net smelter return (NSR) royalty of 1%.
If a participant’s interest is converted to the NSR royalty, the other participant is granted an option to redeem the royalty for payment of $200,000 within two years of the conversion.