PERTH (miningweekly.com) – Copper gold miner Oz Minerals on Thursday announced the sale of its interest in the Jericho and Eloise joint ventures (JVs) to a subsidiary of fellow-listed Minotaur Exploration for A$6.6-million.

The sale will include a deferred contingent consideration of up to $8.82-million, calculated at the rate of 4c per pound of payable copper above 200 000 t contained copper, and a further A$2.75-million on completion of a prefeasibility study.

Oz Minerals holds an 80% interest in the Jericho JV and a 70% interest in the Eloise JV.

MD and CEO Andrew Cole said on Thursday that while a discovery was made at the Jericho JV, the project did not meet the company’s requirements to continue, so it had agreed with JV partner Minotaur to divest of its interest in the project.

“Our exploration strategy is to partner with junior explorers who bring new ideas and regional expertise in a way that allows us to test theories and quickly determine the attractiveness of a project. This is a good example of how our partnering approach allows us to continually turn over our portfolio of exploration projects as we search for our next material discovery.”

Minotaur told shareholders that the consolidation of the Jericho and Eloise tenements was a logical and preferable outcome for both companies, and would enable Minotaur subsidiary Demetallica to pursue discovery objectives and its growth ambitions.

“This transaction injects a cornerstone asset into Demetallica’s proposed initial public offering. With all Minotaur’s non-kaolin assets transferring to Demetallica, the new business will be boosted by full ownership of the Chimera polymetal project,” said Minotaur MD Andrew Woskett.

“2022 will be formative year for Minotaur shareholders participating in the new explorer Demetallica, through their in-specie distribution.

Minotaur and fellow-listed Andromeda Metals last month struck a merger agreement to create an Australian kaolin/halloysite and technology company, consolidating ownership of the Great White kaolin project, in South Australia.

Under the terms of the agreement struck this week, Andromeda would acquire Minotaur through a unanimously recommended off-market takeover offer, offering 1.15 of its own shares for every one Minotaur share held.

The spin-out of Demetallica is a pre-condition of the merger agreement, and Minotaur shareholders are expected to meet to vote on the demerger on January 20.