- Mithril Resources (MTH) has entered a farm-in agreement with CBH Resources
- CBH owns and operates the Rasp Zinc Lead Silver Mine in New South Wales
- This agreement will see CBH expand its New South Wales portfolio by earning up to 80 per cent of Mithril’s Billy Hills Zinc Project
- To do this, it will need to fund roughly $5 million for exploration over 5 years
- Shares in Mithril Resources remain flat and are trading for 1.1 cents each
Minerals explorer Mithril Resources (MTH) has executed a binding farm-in heads of agreement with CBH Resources.
CBH is the owner and operator of the Rasp Zinc Lead Silver Mine at Broken Hill in New South Wales. It is a wholly-owned subsidiary of Toho Zinc Co., which is a Japanese metals refining company that is listed on the Tokyo Stock Exchange
“I am delighted to have a company of CBH’s calibre partner with Mithril to explore the Billy Hills Project,” Mithril Managing Director David Hutton said.
In this agreement, CBH can earn up to an 80 per cent interest in Mithril’s Billy Hills Zinc Project (EL’s 04/2503, 04/2497, and 80/5191).
To earn a majority ownership, CBH will need to fund $4 million for exploration over a five year period.
“Introducing a farm in partner for Billy Hills is consistent with our strategy of introducing exploration partners to all of our Australian projects to allow the company to focus resources on its new Copalquin Gold Silver Project in Mexico,” David added.
The Billy Hills Zinc Project is situated just 25 kilometres east of Fitzroy Crossing. The project contains several high-grade zinc targets including the Firetail Prospect.
Mithril previously collected rock chip samples from Firetail, which returned assay values of up to 30.3 per cent zinc, 127g/t silver and 3.0 per cent lead.
Shares in Mithril Resources remain flat and are trading for 1.1 cents each at market close.