Venturex and Aurora sign deal over Whim Creek
PERTH (miningweekly.com) – ASX-listed Venturex Resources and Aurora Minerals have inked a binding earn-in and joint venture (JV) agreement which could see Aurora earn an 80% interest in the Whim Creek copper/zinc project, in Western Australia.
Under the terms of the agreement, Aurora would pay an initial A$150 000 in cash and would spend A$1.5-million on exploration over a 15-month period to earn an 80% interest in the project area.
Aurora would then have the additional obligation of a further A$2.5-million over a four-year period at the start of the JV to maintain its interest in the project, and would be required to pay A$3-million over three A$1-million instalments over a three-year period, starting on the second anniversary of the transaction.
“This transaction allows Venturex to realise meaningful value from a noncore asset at Whim Creek while we continue to focus our financial and intellectual resources on exploration of the Panorama VMS trend and the future development of the Sulphur Springs copper/zinc project, where an exciting new drilling programme is scheduled to commence next month,” said Venturex executive director Anthony Reilly.
He noted that Aurora would give the Whim Creek asset the focus and attention it deserves to unlock value and advance the project to the next level, while Venturex would retain meaningful exposure via a free-carried 20% interest.
Aurora will require shareholder approval for the transaction and will need to re-comply with the ASX-listing rules. In order to re-comply with the listing rules and to support exploration plans at the project, the company will conduct a capital raise to raise as much as A$2-million, at a price yet to be determined.
The floor price of the capital raise will be set at 2c a share.
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