Red Hill Minerals (ASX:RHI) has executed a conditional binding Heads of Agreement with Peel Far West Pty, a subsidiary of ASX-listed Peel Mining (ASX:PEX), to explore the Curnamona Project in New South Wales.
The agreement can see Red Hill earn a 75% interest by spending $6.5 million on exploration over five years.
Upon earning the 75% interest, a Joint Venture will be established with Red Hill as the Manager, and future funding will follow a standard contribute or dilute arrangement.
“Red Hill is looking forward to working closely with Peel to apply systematic and innovative exploration approaches to unlock value from these tenements,” Red Hill’s Executive Chairman Joshua Pitt said.
“The company is excited to progress exploration of the Curnamona tenements in parallel with the West Pilbara Gold and Base Metals Project, and will continue to assess future projects to add to the exploration portfolio.”
The Curnamona Project tenements span over 1,460 km² in the Broken Hill province of New South Wales and extend into South Australia’s Anabama Project.
The company believes the Broken Hill Project has Tier 1 potential for Zinc-Lead-Silver deposits, along with the Anabama Project considered promising for Copper and Gold, with an existing non-JORC compliant resource estimate of 4.2Mt at 0.52% Copper.
Red Hill Minerals’ share price has steadily increased since selling its 40% interest in the Red Hill Iron Ore Joint Venture to Mineral Resources (ASX:MIN) in September 2021 for $400 million in cash and a 0.75% royalty.
With a market cap now at $500 million, the company is well-positioned to establish new joint ventures and continue growing its exploration portfolio.
Shareholders reacted favourably to the latest joint venture news, with shares up 3% this morning. RHI last traded at $7.90.
PEX last traded at 13 cents.