Sandfire partners with White Rock on Alaska project
PERTH (miningweekly.com) – Junior White Rock Minerals has struck a A$30-million earn-in and joint venture (JV) option agreement with fellow-listed Sandfire Resources over its Red Mountain base and precious metals project, in Alaska.
Under the terms of the agreement, Sandfire could earn up to a 51% interest in the project by spending A$20-million on exploration over a four-year period, with a minimum A$6-million spend during the first year.
Sandfire could then elect to increase its interest in the project to 70% by sole-funding a further A$10-million and delivering a prefeasibility study within a further two-year period.
At this point, White Rock could either elect to contribute its 30% share of expenditure, or could allow Sandfire to sole-fund definitive feasibility studies in exchange for a further 10% interest in the project.
Should White Rock not elect to contribute to the development of the project, Sandfire could be required to sole fund this expenditure for an additional 10% interest in the project, taking its share to 90%, with White Rock to repay 10% of the total development expenditure to Sandfire from 65% of its share of the project cash flow.
White Rock MD and CEO Matt Gill said on Monday that securing a partner like Sandfire, with world-leading expertise in exploration and development of base metals projects, was a strong endorsement of the quality and potential of the Red Mountain project.
“It is significant for White Rock shareholders that the terms of the agreement with Sandfire provide a funding pathway to advance the Red Mountain project through exploration to the point of advanced development studies and allow White Rock to retain a 30% interest in any project development at the point when the economics of a project are well defined by a prefeasibility study.”
The Red Mountain project consists of some 475 km2 of tenements covering numerous historic volcanogenic massive sulphide prospects with little modern exploration.
Comments
Press Office
Announcements
What's On
Subscribe to improve your user experience...
Option 1 (equivalent of R125 a month):
Receive a weekly copy of Creamer Media's Engineering News & Mining Weekly magazine
(print copy for those in South Africa and e-magazine for those outside of South Africa)
Receive daily email newsletters
Access to full search results
Access archive of magazine back copies
Access to Projects in Progress
Access to ONE Research Report of your choice in PDF format
Option 2 (equivalent of R375 a month):
All benefits from Option 1
PLUS
Access to Creamer Media's Research Channel Africa for ALL Research Reports, in PDF format, on various industrial and mining sectors
including Electricity; Water; Energy Transition; Hydrogen; Roads, Rail and Ports; Coal; Gold; Platinum; Battery Metals; etc.
Already a subscriber?
Forgotten your password?
Receive weekly copy of Creamer Media's Engineering News & Mining Weekly magazine (print copy for those in South Africa and e-magazine for those outside of South Africa)
➕
Recieve daily email newsletters
➕
Access to full search results
➕
Access archive of magazine back copies
➕
Access to Projects in Progress
➕
Access to ONE Research Report of your choice in PDF format
RESEARCH CHANNEL AFRICA
R4500 (equivalent of R375 a month)
SUBSCRIBEAll benefits from Option 1
➕
Access to Creamer Media's Research Channel Africa for ALL Research Reports on various industrial and mining sectors, in PDF format, including on:
Electricity
➕
Water
➕
Energy Transition
➕
Hydrogen
➕
Roads, Rail and Ports
➕
Coal
➕
Gold
➕
Platinum
➕
Battery Metals
➕
etc.
Receive all benefits from Option 1 or Option 2 delivered to numerous people at your company
➕
Multiple User names and Passwords for simultaneous log-ins
➕
Intranet integration access to all in your organisation