THE BOURSE WHISPERER: Helix Resources (ASX: HLX) has signed an Earn-In Agreement with Chilean based private equity and advisory company, Fondo De Inversion Privado EPG Exploracion Minera (EPG Mining Exploration Fund).
The agreement covers the company’s over the Joshua copper-gold project, located in Chile with key terms including:
EPG has the option to earn a 33.4 per cent interest in the Joshua project by undertaking a minimum of 3,500 metres of diamond drilling within one year for a minimum commitment of US$1.2 million.
Upon completion of Stage 1, EPG can then elect to increase its interest to 50.1 per cent in the project by completing up to 6,500m of RC and diamond drilling within 1.5 years for a minimum commitment of US$1.8 million.
Helix explained that following the completion of the two stage program, EPG will have a 50.1 per cent interest in the project, leaving it with a 49.9 per cent interest in the project.
A Joint Venture over the project will then form to progress the project.
“Since 2013 Helix has worked to secure a partner to advance the Joshua project,” Helix Resources said in its ASX announcement.
“Despite this being a period with a lack of interest in greenfield exploration, the Joshua project continued to attract significant technical interest and has been subject to three JV offers.
“In Helix’s view, these offers did not meet the minimum criteria required to test a large copper porphyry target in its entirety and the offers were rejected.
“The company remained focused and patient until an appropriate agreement for shareholders and the project could be secured.”
Helix described the agreement with EPG as a partnership with a well-funded Chilean company that comes with a fully-funded US$3 million drilling program to test the project’s large porphyry target over a short time frame.
The company indicated that, subject to positive drill results, this work is expected to advance the project considerably and at completion of the Earn-In program, Helix anticipates retaining a healthy equity stake in a greenfield copper-gold porphyry discovery, located in a world class mining district.