THE BOURSE WHISPERER: Fox Resources (ASX: FXR) has completed the definitive Farm-In and Joint Venture Agreement announced in January with Pilbara Minerals Limited (ASX: PLS).
The JV is focused on the development of 10 of the latter’s 14 exploration tenements located in the West Pilbara region of Western Australia.
The two companies are now working with mining and exploration services provider Newexco to finalise an initial exploration program to carry out exploration activities within the tenements.
The JV considers the Pilbara Minerals tenements to be prospective for base metals, platinum group elements and/or gold mineralisation.
West Pilbara tenements held by Fox Resources and the tenements under the Joint Venture. Source: Company announcement
“The Fox – PLS joint venture provides the foundation to firm up a number of anomalies previously identified on the PLS tenements, and also identify new anomalies which will provide new additional drill targets,” Fox Resources chief executive officer Bruce Garlick said in the company’s announcement to the Australian Securities Exchange.
“A significant VTEM program is being prepared which will cover new areas of the PLS tenements that have not been subject to VTEM previously.
“This represents a great opportunity for Fox and PLS to develop these assets, which are close to Fox’s other projects and current landholding in the Pilbara.”
Under the agreement, Fox Resources is entitled to acquire up to an 80 per cent interest in the tenements, in return for carrying out extensive exploration activity.
The farm-in remains subject to the agreement of the initial exploration work program and obtaining necessary regulatory and governmental approvals.
Once in place the farm-in program will be implemented over three stages.
Fox is to make an upfront cash payment of $150,000 to Pilbara Minerals to earn a 40 per cent interest in the tenements.
The company can earn the remaining 40 per cent in three stages over a period of three years for yearly expenditure of $565,000 in each of the first two years (each to earn an additional 15 per cent interest) and $839,000 in the third (to earn the final 10 per cent interest).
Fox can elect to withdraw from the JV after spending a minimum of $565,000 in the first year of the joint venture at no additional cost.
Fox will serve as the manager of the joint venture.