Aim-listed copper explorer Great Western has announced it is party to an option agreement with global copper producer KGHM Polska Miedz whereby KGHM may earn a 100% interest in the Eastside-Tango project, in Nevada.

Great Western currently holds a 30% participating interest in the project, but KGHM may earn full ownership through staged payments and a minimum exploration commitment of $5-million over a six-year period.

Great Western entered into a pooling agreement with Bronco Creek Exploration, a division of TSX-V-listed Elemental Royalty Corporation, in August 2024, which combined Great Western’s Eastside mine claims with Bronco Creek’s adjoining Tango claims to form the Eastside-Tango project.

Under that agreement, Great Western and Bronco Creek hold participating interests of 30% and 70%, respectively.

An execution payment and yearly option payments will total $650 000, of which $195 000 will be attributable to Great Western. Further advance royalty and milestone payments will be due upon KGHM declaring a resource estimate on the project, a preliminary economic assessment and a feasibility study.

The Eastside-Tango parties, including Great Western, retain a 2% net smelter return royalty on the project – which amounts to 0.6% for Great Western.

Great Western says the option agreement with KGHM is a clear endorsement of the Eastside-Tango asset and of the company’s project generation strategy, supporting disciplined capital allocation while preserving upside.

“Securing an agreement with a globally established copper producer validates the prospectivity of the wider district and highlights the potential value of the copper opportunity at our nearby Huntoon copper project. This transaction delivers immediate value, while retaining long-term royalty exposure and transferring future funding of the asset to a well-capitalised operator,” says Great Western chairperson Brian Hall.

He adds that with tungsten being recognised as a critical defence and industrial metal in short supply, and with tungsten prices being at record levels, the group is focusing its management and financial resources on advancing tungsten opportunities on a three-kilometre corridor between Great Western’s Defender and M2 deposits, in Nevada. 

This project is the focus of a major exploration campaign initially aimed at achieving a maiden mineral resource estimate by the end of 2026.