Monax Resources has signed a non-binding term sheet with Iluka Resources in respect of a proposed farm-in and joint venture agreement in relation to the Phar Lap Iron-Oxide Copper-Gold (IOCG) Project, which is in northern South Australia, on the margin of the Mt Woods Inlier and about 50km west of Prominent Hill.

According to the terms sheet, Iluka will prepare a farm-in and exploration joint venture agreement for negotiation that provides:

• Iluka can earn 80% of the project by funding $2 million of exploration over four years; and

• Iluka will spend $400,000 within the first two years and may withdraw at any time after it has incurred $400,000 of expenditure on the project.

Monax completed a detailed 250 metre x 250 metre infill ground gravity survey in mid-2014 over two targets on this exploration licence. The targets were identified by existing gravity and magnetic survey data. An Aboriginal heritage survey has been completed with both targets cleared for drilling.