- Kopore Metals (KMT) has signed an earn-in to a joint venture deal under which it may acquire a 70 per cent stake in the Horseshoe Lights Mine
- Through its wholly-owned subsidiary, Kopore (WA), the agreement was signed with Murchison Copper Mines, a subsidiary of Horseshoe Metals
- To earn the full 70 per cent interest, Kopore will need to pay a total of $3 million to Murchison, which includes exploration expenses
- Once the earn-in is complete, the two companies will contribute to the joint venture relevant to their respective interests
- Kopore Metals is down 32.1 per cent to 1.9 cents per share
Kopore Metals (KMT) has signed an earn-in to a joint venture deal under which it may acquire a 70 per cent stake in the Horseshoe Lights Mine.
Through its wholly-owned subsidiary, Kopore (WA), the binding agreement was signed with Murchison Copper Mines, a subsidiary of ASX-listed Horseshoe Metals.
According to the terms of the deal, Kopore will make an initial payment of $50,000 to Murchison upon the satisfaction of certain conditions.
Kopore will then be eligible to earn a 51 per cent stake in the Horseshoe Lights Mine by assuming $1.45 million in exploration expenses, $250,000 of which must be spent within the first 12 months.
Once this has been completed, Kopore and Murchison will form a joint venture to progress exploration activities.
Kopore will then be able to acquire a further 19 per cent stake, for a total 70 per cent interest, by assuming another $1.5 million in exploration expenses within a two-year period.
With the earn-in complete, Kopore and Murchison will each contribute project expenses in line with their relevant interests in the joint venture, in which Kopore will hold 70 per cent and Murchison will own the remaining 30 per cent.
“We were initially attracted by an untested geophysical target that looks similar to the geophysical signature of the historical mine containing a high-grade gold drill intercept that has never been followed up,” Kopore Metals Managing Director Simon Jackson said.
“This attractive opportunity provides initial targeted areas to be tested with a systematic exploration approach, in areas close to the historically high-grade Horseshoe Lights Mine,” he added.
Discovered in 1946, the Horseshoe Lights Mine was engaged in commercial production until 1994, during which time roughly 3.3 million tonnes of ore were mined. This resulted in the production of 56,000 tonnes of copper at an average grade of 1.7 per cent and 307,000 ounces of gold at an average grade of 2.9g/t
Kopore Metals is down 32.1 per cent to 1.9 cents per share at market close.