Minotaur and joint venture partner OZ Minerals have entered into a binding term sheet to capitalise on their success within the Eloise Joint Venture, the new deal comprising three key aspects.

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Minotaur Jericho driller Jul 2019

Significantly, it provides for OZ Minerals to fund all activities on the Jericho project from 1 April 2019 with Minotaur being ‘loan carried’ until production in return for Jericho JV interests being set at OZ Minerals 80 per cent and Minotaur 20 per cent, with Minotaur’s loan balance becoming payable only from a mining operation at Jericho; to be repaid from 70 per cent of Minotaur’s share of positive cash flow.

Should an operation not proceed or succeed Minotaur will be absolved of the debt, which accumulates at the bank bill swap rate plus 2 per cent. These terms are incorporated into a formal Jericho Joint Venture Agreement, execution of which is imminent.

Additionally, the existing Eloise Joint Venture has been expanded such that OZ Minerals will contribute a further A$3 million over 24 months to retain its 70 oer cent interest level achieved in March 2019.

A number of new ISCG style anomalies identified by Minotaur will form the kernel of the expanded JV work plan. Similarly, a new joint venture agreement is under preparation.

“More broadly, across 24,000km2 of the Cloncurry region, the Cloncurry Alliance has been established as a project generating joint venture, to seek opportunities that may complement a resource development project at Jericho,” said OZ Minerals in a statement.

“Potential targets could include existing resource assets, infrastructure, tenement positions and mineralised systems.

“Again, documentation of a formal joint venture agreement is approaching finalisation.”

Following signing of a binding term sheet on 28 May 2019 a formal agreement for the sale of Minotaur’s Leinster and Saints nickel tenements near Kalgoorlie was executed and is proceeding towards completion.

Acquirer Auroch Metals will, subject to shareholder approvals, issue Minotaur with 18.333 million AOU shares which, on an undiluted basis, will result in Minotaur holding 15.2 per cent ownership of Auroch.

Auroch is preparing for a diamond drilling programme in the September Quarter, at Saints, targeting possible resource extensions.

The Company capitalised on this suite of positive news, quickly completing a private placement to sophisticated investors and existing shareholders, raising A$1.25 million before costs. Minotaur’s issued ordinary shares now total 334.4 million and cash held at end June was A$3.986 million.

The Jericho deposit was excised from the Eloise Joint Venture and forms the basis of the new Jericho Joint Venture.

Drilling under the Jericho JV commenced early April and concluded on 24 July 2019, with 58 holes completed for 14,880 metres. This brings the total number of holes drilled at Jericho (2017-2019) to 96 for 29,740 metres.

The 2019 drill program tested the parallel J1 and J2 copper-gold lodes to around 250-300m below top of basement. The principal aim was to improve geological confidence in lode continuity and grade along 2.3 kilometres of J1 and 1.7 kilometres of J2.

Assays have been reported for 40 holes with the majority intersecting strong copper-gold mineralisation, demonstrating continuity of mineralisation through the host structures J1 and J2, as expected.

Source:  www.minotaurexploration.com.au; www.ozminerals.com