ActivEX forms new JV with Coppermoly

THE BOURSE WHISPERER: ActivEX has entered into a new Joint Venture in the Esk Trough area having signed a letter agreement with Coppermoly Limited for it to farm-in to ActivEX’s Esk Trough project.

The Esk Trough project is a group of five EPMs located 80 kilometres west of Gympie in South East Queensland.

The project consists of 356 square kilometres across five exploration permitted areas: Booubyjan, Dadmarine, Balirmore Ban Ban and Stockhaven.

ActivEX did have a JV in place with Minotaur Exploration over part of this area.

This was terminated in late 2010, returning 100 per cent ownership of the area to ActivEX.

Terms of the new agreement are for Coppermoly to farm-in to the joint venture area by sole funding exploration spending of $3 million over three years to earn a 51 per cent interest.

Coppermoly has committed to a minimum expenditure of $0.5 million in the first year.

Once the first stage earn-in has been completed Coppermoly can elect to continue sole funding the exploration program and by spending an additional $3 million it can earn a cumulative 70 per cent interest in the area.

If and when Coppermoly earns the 70 per cent, ActivEX can elect to claw back a 10 per cent interest (to 40 per cent) by sole funding $6 million of exploration expenditure.

The JV then will contribute on a pro-rata basis if either company discontinues sole funding.

“We have always believed in this area because of its porphyry indications, so it is a credit to us to bring in another company to continue exploration in the area,” ActivEX managing director Doug Young said in the company’s announcement to the Australian Securities Exchange.

“Our work in the past has intersected some wide zones of copper-gold mineralisation including 290 metres of 0.13 per cent copper and the prospects have a high gold content as shown by drilling at the Kakapo prospect where ore grade intersections of 88 metres at 0.47 per cent copper and 0.49 grams per tonne gold have been made.

“As a company we have been largely focussed on our Cloncurry copper-gold project and the Barambah gold-silver project in the last year, so to bring a new source of funding for Esk Trough is a great result, particularly involving a company like Coppermoly, which has a lot of experience in this style of deposit in Papua New Guinea.

“They will bring new ideas and techniques to help define targets and we will assist them by managing the project on the ground, as we have done in the past.”

The two companies are developing a forward exploration program at the moment and anticipate activities to commence soon.