Mithril Resources has executed a Farm-in and Joint Venture Agreement with Monax Mining, enabling Monax to earn up to an 80 per cent interest in Mithril’s Limestone Well tenements by completing exploration expenditure of AU$2.5M over 5 years.
|Regional magnetic image showing location of the Barrambie Deposit and the Limestone Well JV tenements|
The Limestone Well tenements, located 90 kilometres southeast of Meekatharra in Western Australia, lie immediately along strike from the Barrambie Titanium Vanadium Deposit (2012 JORC Inferred + Indicated Resource of 280.1Mt @ 9.18 per centTiO2 and 0.44 per cent V2O5).
Monax plans to undertake reconnaissance aircore drilling to determine the vanadium potential of the magnetic units at Limestone Well as soon as possible.
Commenting on the new Farm-In and Joint Venture, Mithril’s Managing Director Mr David Hutton welcomed the new exploration initiative by Monax and looked forward to seeing the results of their work.
“Importantly, the new agreement allows Mithril to remain focussed on the Kurnalpi Nickel Project where drilling has just finished, and assays are awaited, and the new Billy Hills Zinc Project where two tenements have just been granted,” said Mr Hutton.
The terms of the Farm-in and Joint Venture Agreement are as follows require Monax to spend a minimum of $150,000 in the first year before it can withdraw, being able to earn a 60 per cent interest in the tenements by expenditure of AU$1.5 million over 3 years (Stage 1).
At end of Stage 1, Mithril has the right to contribute on a pro rata basis. If Mithril elects not to contribute, Monax can earn a further 20 per cent by expenditure of a further AU$1 million within a further 2 years (Stage 2).