THE BOURSE WHISPERER: Clancy Exploration (ASX: CLY) has entered into a farm-in and Joint Venture agreement with High Power Exploration Inc. (HPX) on the Trundle copper-gold project in New South Wales.
Under the terms of the agreement, HPX is to subscribe for 50 million Clancy shares at 1.5 cents each to raise $750,000.
HPX and Clancy will then form a JV under which HPX can earn into the Trundle project, which is presently held 100 per cent by Clancy.
HPX will fund $1 million on exploration over 12 months to earn an initial 51 per cent of the project with a minimum spend of $750,000 (Phase 1).
HPX may then sole fund an additional $4 million over three years (Phase 2) to earn an additional 29 per cent, for a total of 80 per cent.
Should HPX fail to hit the Phase 2 commitment the project will revert 100 per cent to Clancy.
A total of 70 per cent of the placement proceeds ($525,000) will be expended as part of the minimum exploration spend.
The remaining 30 per cent ($225,000) will be available to fund Clancy’s working capital.
“Trundleis the second joint venture that Clancy has undertaken with HPX utilising its Typhoon technology and its expertise,” Clancy Exploration managing director Gordon Barnes said in the company’s announcement to the Australian Securities Exchange.
“Typhoon was successfully deployed at the Fairholme JV with Kaizen and we are confident that it will help us zero in on drill targets at Trundle where our previous drilling has demonstrated the potential for porphyry copper-gold and related skarn mineralisation.”