Diatreme signs agreement over Cyclone project
PERTH (miningweekly.com) – Mineral sands explorer Diatreme Resources on Thursday announced that its subsidiary Lost Sands had signed a heads of agreement (HoA) with Hong Kong-based Perpetual Mining over the Cyclone zinc project, in Western Australia.
Under the HoA, Perpetual would invest some A$2-million directly into the Cyclone project to obtain a 6% equity stake.
The funding would be used to locate and secure suitable water supplies for future mining operations, and to fund the approvals for both the development of a road transport corridor between the Forrest and Cyclone deposits, as well as for the grant of a mining licence and associated licences.
Diatreme has previously reported the discovery of significant water flows beneath the proposed Cyclone mine area, and pump testing, which would be undertaken in early 2014, would provide the company with a clearer picture of the planning requirements for any future production bore field to supply the mining operation with water.
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