Photo by: Bloomberg
JOHANNESBURG (miningweekly.com) – South Africa-focused mineral explorer and developer White Rivers Exploration (WRE) has signed a memorandum of understanding (MoU) with Windfall Energy to facilitate the joint exploration and development of WRE’s Heilbron and Kroonstad gas assets in the Witwatersrand basin.
Under the Terms of the MoU, Windfall would fund all costs associated with the exploration and development of the two gas resources to the point of the granting of a production right on each asset.
Upon achieving an exploration right for either asset, Windfall would earn a 30% interest in the gas rights of the respective asset. Its stake could increase to 51% should a production right be secured and it would then also have first right of refusal to procure any gas produced on normal commercial terms.
Both companies would contribute pro rata of equity participation to achieve commercial production.
WRE chairperson Neil Warburton said the signing of a second joint venture (JV) partnership to develop WRE’s assets in South Africa demonstrated the quality of the company’s portfolio.
“We look forward to working with Windfall Energy to fast-track the development of the Heilbron and Kroonstad gas assets at a time when alternative energy supplies in South Africa are being sought. The agreement marks another milestone on the path to commercialisation for WRE’s large portfolio of assets.”
HARMONY GOLD JV
Meanwhile, the company said its exploration partnership with South Africa’s third-largest gold miner, Harmony Gold was progressing well.
The JV was established in October 2014, to explore and develop gold resources at WRE’s Beisa multicommodity project and abutting exploration areas within Harmony’s adjacent Target mine operations in the Free State.
The JV had now consolidated all historical data on the project and expected to release an initial Joint Ore Reserves Committee-compliant gold resource in September.
The JV had also appointed Johannesburg-based mining engineering consulting firm Bara Consulting to undertake scoping studies based on the use of Harmony’s abutting Target mine underground and surface infrastructure.
The initial scoping study was expected to be completed by December.