THE BOURSE WHISPERER: Apollo Minerals (ASX: AON) and Mincor Resources (ASX: MCR) have settled on the terms of an exploration farm-in and joint venture agreement over exploration licence EL4932 in South Australia.
Apollo is currently developing an iron ore operation at Commonwealth Hill and is busy exploring the project area for further iron and base metals mineralisation.
The new agreement with Apollo provides it with improved access and infrastructure site selection options for its proposed iron ore development as well as a large, prospective land holding from which the company hopes to expand its iron and base metals interests.
Tenement location plan showing Apollo’s approx. 750sqkm holding and
additional 624sqkm tenement through earn-in agreement. Source: Company
Under terms of the earn-in agreement, Apollo may earn a 75 per cent interest in exploration licence EL4932 by sole funding exploration totalling $2 million over a three year period.
Apollo has committed to a minimum exploration spend of $250,000 on EL4932 during the first year of the farm-in with Mincor.
At the completion of the farm-in, Mincor may elect to convert its residual 25 per cent interest into a gross production royalty of 3.5 per cent on gold, 2.5 per cent on base metals and 1.5 per cent on all other minerals.
On conversion Apollo would pay Mincor an amount equal to 25 per cent of the total spent on exploration during the farm-in, which is expected to be $500,000.
“This agreement further strengthens Apollo’s position in what is a highly prospective iron ore and base metals province and is another demonstration of our commitment to develop the minerals potential of the region,” Apollo Minerals chief operating officer Dominic Tisdell said in the company’s announcement to the Australian Securities Exchange.
“Through hard work and careful planning we look forward to sharing the rewards of what is shaping up to be a very promising joint venture.