- Twenty Seven Co (TSC) signs a binding term sheet with Rio Tinto Exploration (RTX), a subsidiary of Rio Tinto (RIO), in relation to the northern Rover Project in WA
- Under the term sheet, RTX will pay an upfront payment of $25,000 to TSC for an exclusive six-month option to explore North Rover for non-gold minerals
- The six-month option period may be extended for a further six months if there is a delay in RTX’s exploration activities beyond its control
- At any time during the option period, RTX may choose to farm-in to the project to earn an 80 per cent interest by sole funding exploration funding of $5 million
- TSC is up 12.5 per cent on the market with shares trading at 0.5 cents
Twenty Seven Co (TSC) has signed a binding term sheet with Rio Tinto Exploration (RTX), a subsidiary of Rio Tinto (RIO), in relation to the northern Rover Project.
Under the term sheet, RTX will pay an upfront payment of $25,000 to TSC for an exclusive six-month option to explore North Rover for non-gold minerals.
The six-month option period may be extended for a further six months if there is a delay in RTX’s exploration activities beyond its control.
If the option needs to be extended, RTX will pay a further $25,000 to TSC.
Further, at any time during the option period, RTX may choose to farm-in to North Rover to earn an 80 per cent joint venture interest by sole funding exploration spending of $5 million for non-gold minerals.
RTX must also meet certain minimum requirements of a minimum of 500 metres of drilling in the first two years of the farm-in and incurring a minimum of $200,000 of exploration expenditure during each year of the farm-in.
“We are delighted to be partnering with Rio Tinto Exploration to advance exploration for non-gold minerals within the northern part of our Rover Project in Western Australia, complementing TSC’s existing gold exploration activities,” CEO Simon Phillips said.
“RTX brings to the table a successful exploration track record and deep technical experience that will strongly complement the work completed by TSC’s technical
team over recent months.”
The Rover Project lies near Sandstone in Western Australia in a base metals and gold mineral rich area.
Historically, the area is underexplored and is currently undergoing a resurgence in exploration.
TSC was up 12.5 per cent on the market with shares trading at 0.5 cents at 1:11 pm AEDT.