IGO Ltd turns to copper by picking up 70% stake in Encounter’s Yeneena play

Encounter Resources (ASX:ENR) has confirmed former lithium and nickel heavyweight IGO Ltd (ASX:IGO) has picked up a 70% stake in its Yeneena Copper Project (YCP) – now well and truly a JV operation.

The move makes sense for IGO Ltd, a company that saw both of its key target metals experience price plummets on commodity markets coming out of the COVID-19 years. On both counts, a rapid uptick in supply saw IGO shaken out of the tree.

But while there’s been some degree of likewise volatility for copper; the orange metal remains well above where it was pre-COVID – one of few major commodities to do so, and, a key reason why so many different entities are bullish on copper right now.

IGO and Encounter both also have eyes on cobalt prospectivity at YCP, part of the larger mining hotspot of Paterson Province.

“The Paterson Province is located in a Tier 1 mining jurisdiction and represents a globally significant opportunity for new copper discoveries under shallow cover using leading edge exploration techniques,” Encounter EC Will Robinson said.

“We look forward to continuing to work closely with IGO to advance the copper potential at Yeneena in what is an exciting time for the Paterson Province.”

At any rate, IGO’s 70% stake comes to it after having spent $15 million on exploration at YCP; through 2024, the company sunk two diamond drill holes and 39 aircore holes with assays due early next year.

ENR last traded at 35cps through Monday morning’s open.

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