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Metals X inks exploration deal with Independence

11th June 2020

By: Esmarie Iannucci

Creamer Media Senior Deputy Editor: Australasia

     

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PERTH (miningweekly.com) – ASX-listed Metals X has inked a binding farm-in and joint venture (JV) term sheet with metals miner Independence Group over its Paterson exploration project, in Western Australia.

The tenement area covers some 2 394 km2 but does not include Metals X’s Nifty or Maroochydore copper projects.

Under the terms of the earn-in agreement, Independence would sole fund A$32-million in exploration over a six-and-a-half-year term to earn a 70% interest in the Paterson exploration project, with a minimum A$11-million to be spent over a three-and-a-half-year period.

On earning the 70% interest, the two companies would form a JV, with Metals X to be free carried until the completion of a prefeasibility study on any new mineral discovery.

Metals X CEO Mike Spreadborough said on Thursday that Independence was a highly regarded, successful and experienced exploration and mining company, and that the term sheet delivered a significant exploration commitment on the substantial tenement holdings on the Paterson Province.

“Importantly, Metals X will retain full control of the Nifty copper operation and its established infrastructure, plus the Maroochydore copper project, which collectively host over one-million tonnes of in-ground copper metal.”

Metals X on Thursday revealed the results of a scoping study into an openpit sulphide operation at Nifty, in order to restart the economic production of copper.

Independence CEO and MD Peter Bradford told shareholders that the company recognised the exploration potential held by the Paterson Province.

“The JV with Metals X over 2 400 km2 of highly prospective ground further consolidates Independence’s presence in this highly endowed, yet under-explored province.

“We look forward to the creation of shareholder value for both Independence and Metals X through discovery.”

Edited by Creamer Media Reporter

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