Australian miner Hannans Reward has reached a conditional agreement with Kagara and St Barbara to gain a majority interest in the highly prospective Forrestania nickel and gold tenure in Western Australia.
The agreement gives Hannans an unencumbered 85% ownership in the underexplored ground, located adjacent to Hannans’ 80%-owned Stormbreaker Project .
Kagara holds the nickel rights while the tenements will pass from St Barbara ownership to Hannans.
The companies retain pre-emptive rights in case Hannans plans to sell or form a joint venture over the tenements.
Barbara retains a 15% free carried interest in gold and Kagara retains 15% interest in all minerals except gold, Hannans said.
The agreement means that for the first time in many years nickel targets within that ground are controlled by one company, Hannans managing director Damian Hicks said.
We believe the newground has similar rock types to those which host the outstanding nickel mines and deposits owned by our neighbours. We also believe the ground has great potential for gold as it is squeezed between significant gold mining leases,” Hicks said.
Hannans plans to begin exploration at the new tenure soon after settling the agreement in September 2009.