Altona Mining inks JV with Chinalco Yunnan Copper Resources

THE BOURSE WHISPERER: Altona Mining (ASX: AOH) has struck an exploration Joint Venture agreement with Chinalco Yunnan Copper Resources (ASX: CYU) where Chinalco may earn up to a 70 per cent interest in the southern tenements at Altona’s Roseby project in Queensland.

 

Source: Company announcement

 

Chinalco is 43 per cent-owned by Yunnan Copper Industry (Group), which is a subsidiary of Aluminium Corporation of China.

Under the terms of the agreement:

–    Chinalco must spend a minimum of $1 million on exploration activities in the next two years;

–    Chinalco can earn a 30 per cent interest by spending $2 million (inclusive of the $1 million above);

–    Chinalco can earn a 60 per cent interest by spending $4 million within 5 years; and

–    Chinalco can earn a 70 per cent interest by funding and completing a Definitive Feasibility Study along with a decision to mine on a substantive mining project.

“Altona is concentrating its efforts at Roseby on the Little Eva development through reviewing and updating the 2012 Definitive Feasibility Study,” Altona Mining managing director Dr Alistair Cowden said in the company’s announcement to the Australian Securities Exchange.

“We are seeking a transaction to sell, partner or finance Little Eva whilst minimising dilution to shareholders.

“The Joint Venture with CYU allows us to focus on our extensive northern leases at Roseby (800 square kilometres) whilst retaining what is essentially a 30 per cent free-carried interest to a decision to mine in the southern tenements, should CYU complete the Joint Venture earn-in.”