- IGO Newsearch, a subsidiary of IGO, has entered an agreement with Matsa Resources (MAT) to earn a 70 per cent interest in the Symons Hill project
- This agreement will see IGO take full responsibility of all future exploration at the project for a cost of $7 million over the next three-years
- Matsa will retain the remaining 30 per cent until a feasibility has been completed or a decision to develop a deposit at the project arises, whichever occurs first
- Matsa is up a slight 3.57 per cent and shares are trading for 14.5 cents each
IGO Newsearch, a subsidiary of IGO, has entered an agreement with Matsa Resources (MAT) to earn a 70 per cent interest in the Symons Hill project.
This agreement will see IGO take full responsibility of all future exploration at the project for a cost of $7 million over the next three-years.
IGO will first pay Matsa $625,000 for a two-year period in which $1.5 million for in-ground exploration must be incurred for IGO to maintain its holding.
However, IGO can withdraw within 12 months if it has met the minimum spending requirement of $500,000. The project will then be returned to Matsa at no cost.
If after this two-year period IGO elects to continue exploration, it will pay Matsa $1.375 million for an additional 12-months to spend $2 million on exploration.
IGO can then withdraw again if it has met the minimum spending requirement of $500,000.
Once the three-year period is over IGO can obtain a 70 per cent interest in the project for $1.5 million.
Matsa will retain the remaining 30 per cent until a feasibility has been completed or a decision to develop a deposit at the project arises, whichever occurs first.
“The Symons Hill nickel project has been on the backburner for some time with Matsa’s focus on the Lake Carey gold project, but we always maintained it held considerable value,” Executive Chairman Paul Poli said.
“I look forward to IGO using their vast knowledge and experience to exploit Symons Hill, while allowing Matsa shareholders to keep an exposure by retaining a 30 per cent joint venture interest,” he added.
The Symons Hill project is located within the Fraser Range Tectonic zone in Western Australia, six kilometres south-southwest of IGO’s Nova Nickel Operation.
The project spans an area of 70 square kilometres and it is highly prospective for nickel and copper mineralisation.
A significant amount of exploration work has been completed at the project and has identified anomalous nickel mineralisation.
Matsa is up a slight 3.57 per cent and shares are trading for 14.5 cents each at 2:31 pm AEST.