- Pantoro (PNR) and joint venture partner Tulla Resources (TUL) enter a binding term sheet with Mineral Resources (MIN) to explore the Norseman Gold Project in WA
- Under the term sheet, the companies will explore and develop lithium deposits across the project
- Mineral Resources will complete a minimum spend of $500,000 within six months and must spend a further $2.5 million within 18 months
- The company must also complete a feasibility study and define a JORC compliant resource within 24 months to earn 25 per cent of the lithium rights
- Pantoro is up 4.41 per cent with shares trading at 36 cents, Tulla is up 7.69 per cent at 56 cents each and Mineral Resources was up 1.77 per cent and trading at $49.69
Pantoro (PNR) and joint venture partner Tulla Resources (TUL) have entered a binding term sheet with Mineral Resources (MIN) to explore the Norseman Gold Project.
The Norseman Project lies in the eastern goldfields of Western Australia at the southern end of the Norseman-Wiluna greenstone belt, roughly 725 kilometres east of Perth.
It has a mineral resource of 4.2 million ounces of gold and an ore reserve of 602,000 ounces of gold.
Under the term sheet, the companies will explore for and develop lithium deposits across the project.
Mineral Resources will complete a minimum spend of $500,000 within six months and must spend a further $2.5 million within 18 months.
Additionally, Mineral Resources must complete a feasibility study and define a JORC compliant resource within 24 months to earn 25 per cent of the lithium rights.
The company can earn a further 40 per cent of the lithium rights, for a total of 65 per cent ownership, by funding the project until first production.
Pantoro and Tulla, either jointly or independently, have the right to buy back in to increase their ownership to a combined 49.9 per cent.
Further, Mineral Resources must make a final investment decision to proceed with construction within three months of earning its initial farm-in interest.
Pantoro Managing Director Paul Cmrlec commented on the partnership, calling it an outstanding outcome for the company.
“This new partnership is an outstanding outcome for Pantoro to maximise the value of a key mineral asset at Norseman,” Mr Cmrlec commented.
“The agreement allows us to progress without any distraction from our core business of gold development and mining, while maximising value for our shareholders.”
“Pantoro has every confidence that Mineral Resources will ensure the successful development of the lithium assets. We look forward to rapidly generating drilling results from the highly prospective Buldania tenements.”
On the market today, Pantoro was up 4.41 per cent with shares trading at 36 cents, Tulla was up 7.69 per cent at 56 cents each and Mineral Resources was up 1.77 per cent and trading at $49.69 at 1:35 pm AEDT.