Encounter Resources Teams Up with BHP for Northern Territory Copper Hunt

THE BOURSE WHISPERER: Encounter Resources (ASX: ENR) has entered into an Option Agreement with BHP covering the 4,500 square kilometres Elliott copper project in the Northern Territory.

Following the completion of a validation program, BHP will have the right, but not the obligation, to enter an earn-in and Joint Venture agreement in relation to Elliott where the key terms would be:

Staged earn-in where BHP has the right to earn up to 75 per cent interest in Elliott by sole funding up to $22 million of exploration expenditure within 10 years;

Upon BHP completing the earn-in, a 75:25 joint venture will be formed and the parties must contribute funds based on their percentage interest to maintain their respective interests or dilute according to a standard dilution formula. Should a party’s interest dilute to below 10 per cent it shall automatically convert to a net smelter royalty.

During the earn-in phase, BHP has the right to be the manager of the project.

Elliott was the first project secured by Encounter in the NT and comprises seven tenements covering more than 4,500sqkm.

Four of the tenements, covering over 3,000sqkm, were granted in March 2020.

Elliott is located at a major structural intersection on the southwestern margin of the Beetaloo Basin targeting sedimentary hosted copper.

The Beetaloo Basin is part of the Greater McArthur Superbasin that hosts the giant sediment-hosted base metal deposit at McArthur River.

The basin contains thick, petroleum bearing, reduced sediments which are an ideal trap sequence and structural setting for major sediment hosted base metal deposits.

“New data has shone a light on the potential for copper to be found under shallow cover in the Northern Territory,” Encounter Resources managing director Will Robinson said in the company’s announcement to the Australian Securities Exchange.

“Encounter moved early and aggressively to secure first mover opportunities in this new frontier.

“We are delighted to be teaming up with BHP in the search for Tier 1 copper deposits at Elliott.

“We look forward to working alongside the highly respected BHP exploration team to validate this compelling opportunity.”

 

TO READ THE FULL ANNOUNCEMENT: CLICK HERE

 

Email: contact@enrl.com.au

 

Web: www.enrl.com.au