Altona Mining has received a notice from Xstrata Mount Isa Mines that it intends to exercise its option to acquire a 51% interest in a portion of the Roseby Project located in Queensland, Australia.
A formal process will now begin whereby Altona and Xstrata will seek to reach agreement on the exercise price for the interest, failing which an independent expert will determine the price at which the option may be exercised by Xstrata.
Altona Mining managing director Alistair Cowden said the decision by Xstrata demonstrates the attractiveness of Roseby and, in particular, of Little Eva.
"We will now enter formal discussions with Xstrata to ensure the value of this project is fully recognised," said Cowden.
"In parallel, we will continue to progress all options for financing and developing the project."
The Roseby Project contains the Little Eva Copper Project, located in the Mt Isa - Cloncurry mining district, which contains 100 million tonnes of resources.
A recently completed definitive feasibility study confirmed that the Little Eva Project has a potential production profile of 39,000 tonnes per annum of copper and 17,000 ounces per annum of gold.