PERTH (miningweekly.com) – The joint venture (JV) between ASX-listed Highlands Pacific and mining giant Anglo American over the Star Mountain copper project, in Papua New Guinea, will be finalised by February 5.
In December, Anglo entered into the JV agreement with Highlands Pacific, agreeing to pay some $10-million, in two tranches, on the execution of a definitive farm-in agreement.
Anglo American could earn a 15% interest in the Star Mountain project by spending $25-million on exploration over a four-year period, from the date of executing a farm-in agreement.
The mining major would be entitled to increase this shareholding to 51% upon the declaration of a Joint Ore Reserves Committee-compliant resource estimate of about three-million tonnes of contained copper equivalent, within five years of executing the agreement.
Anglo American could move to an 80% interest in the JV by completing and sole funding a bankable feasibility study (BFS) for the Star Mountain project within 15 years of the execution of the farm-in agreement.
Furthermore, Anglo American would provide Highlands with up to $150-million in project development funding as a deferred free-carry following the completion of the BFS, while Highlands would continue to manage the project.
The exploration tenement covers some 515 km2 and is located within the New Guinean Orogenic Belt, which also hosts the Grasberg, Ok Tedi, and Hidden Valley mines, as well as the Frieda deposit.