THE BOURSE WHISPERER: Archer Exploration has reached a Heads of Agreement with BHP Billiton Olympic Dam Corporation (ODC).
The agreement is in regard to the sale of an 80 per cent legal and beneficial interest in Archer’s five West Roxby tenements.
Magnetic image showing Archer’s West Roxby tenements in relation to major IOCG deposits. Source: Company announcement
“The Tenements host a number of undrilled exploration targets including potential IOCG targets at Island Lagoon and Evelyn Dam, a potential Athabasca unconformity uranium target at Apollo and several skarn targets,” Archer Exploration said in its ASX announcement.
Key terms outlined within the Heads of Agreement include:
– ODC to acquire an 80 per cent legal and beneficial interest in the five tenements for $3 million;
– ODC to spend $3 million on Exploration over a period of 3 years;
– ODC will sole fund the project to a maximum of $50 million to a Decision to Mine;
– Archer and ODC agree to establish a Joint Venture to carry on the project with ODC as manager; and
– Archer has the right to sell its participating interest at any stage before and on the Decision to Mine.