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- The South Australian Government approved Fortescue Metals and Tasman Resources farm-in and joint venture
- Fortescue will spend $4 million on Tasman’s Vulcan prospect for a 51 per cent interest
- FMG’s share price is up 4.56 per cent, currently sitting at $8.03 apiece
- Tasman’s share price is up 5.36 per cent, currently sitting at $0.059 apiece
The South Australian government has approved the farm-in and joint venture between mining giant Fortescue Metals and Tasman Resources.
FMG will obtain an interest in Tasman’s Lake Torrens Project, home to the Vulcan, an iron oxide-copper-gold-uranium prospect.
Under the terms, Fortescue will secure a 51 per cent interest in the project by contributing $4 million in funding, plus tax, over three years.
It is required Fortescue pays $1 million before withdrawing from the agreement, and will earn no interest if it pulls out before spending $4 million.
Eventually, the mining giant will have the opportunity to obtain an 80 per cent interest in the Vulcan prospect, for an additional $7 million in funding.
Vulcan is located near BHP’s Olympic Dam, which is renowned as one of the world’s leading copper, gold, silver and uranium deposits.
Fortescue and Tasman’s share prices are both in the green today, up 4.56 per cent and 5.36 per cent respectively. Shares in FMG are currently worth $8.03 apiece and Tasman’s shares are trading for $0.059 each.
