JOHANNESBURG (miningweekly.com) – Though it remains focused on the development of its high-grade Woodland zinc-copper project in New South Wales (NSW), minerals developer Heron Resources on Monday inked a farm-in agreement with fellow ASX-listed Alchemy Resources, covering a portfolio of Heron’s NSW exploration tenements.
Under the headline terms of the farm-in agreement, which covered 674 m2 of central Lachlan Orogen, in NSW, Alchemy agreed to spend A$1-million over three years to earn 51%, as well as a further A$1-million within the two subsequent years to earn an additional 29% interest in the tenements.
Once Alchemy achieved 80% interest in the tenements, a joint venture (JV) would be formed with Heron, free-carried to the completion of a prefeasibility study.
During the term of the JV, if Heron’s interests were reduced to less than 5%, they would revert to a 1.5% net smelter return.
Further, Alchemy would issue two-million Alchemy shares, escrowed for two months, as well as three-year 10c options worth A$2.5-million to Heron, for initial consideration.