Carpentaria locks up Braemar province

THE BOURSE WHISPERER: Carpentaria Exploration says it has strengthened its position as a leading tenement holder in the Braemar Iron Province.

The company’s pronouncement was supported by the announcement of a new joint venture agreement with Maosen Australia that gives Carpentaria the chance to earn a 100 per cent interest an exploration licence in South Australia.

Maosen is a private company based in Queensland, which has other iron ore interests within South Australia, and an extensive network of connections within the Chinese steel industry.

The tenement covers over 20 kilometres of the Braemar Iron Formation, which hosts Carpentaria’s $3.2 billion Hawsons iron project, and is also located adjacent to Carpentaria’s South Dam JV.

Carpentaria Exploration executive chairman Nick Sheard claimed the agreement to be a significant boost for the company’s iron ore interests, highlighting its position as first mover in the province.

“This new Braemar Joint Venture, together with the Hawsons iron project, South Dam and the Torrowangee EL in New South Wales, gives CAP a combined 1,182 square kilometres of tenement holdings and more than 81 kilometres of collective strike of the magnetite siltstone,” Sheard said in the company’s announcement to the Australian Securities Exchange.

“Carpentaria will use its extensive knowledge of the Braemar Iron Formation to fast-track exploration, giving the opportunity to potentially develop a new iron ore project just 200 kilometres from a capital city and close to rail and port infrastructure.”

Under the terms of the JV, Carpentaria is required to pay Maosen Australia a $25,000 execution payment, subject to 30 days due diligence.

On renewal of the tenement, Carpentaria is required to complete 500m of drilling and award Maosen 200,000 fully paid shares.

To earn a 60 per cent interest in the JV, Carpentaria must define a 200 million tonne magnetite resource within three years of initial access and pay Maosen $100,000.

Carpentaria may earn an 80 per cent interest by completing a prefeasibility study and making a further cash payment to Maosen of $200,000, at which time Maosen has the right to contribute on a pro rata basis.

Should Maosen then elect not to contribute to further development, Carpentaria could earn a 100 per cent interest in the project for a further $1millon cash payment to Maosen, whereby Maosen would revert to a 1.5 per cent Net Profit Royalty.

At the completion of a detailed feasibility study, Maosen could elect to regain a 10 per cent interest.