THE BOURSE WHISPERER: Independence Group (ASX: IGO) has entered a farm-in and joint venture with Apollo Consolidated Limited (ASX: AOP).
Apollo Consolidated announced the deal in relation to the company’s early-stage Louisa project located near Fitzroy Crossing in the West Australian Kimberley Province.
Independence is a highly-regarded nickel-copper sulphide producer and explorer that is actively exploring for nickel-copper sulphide mineralisation in the region.
Under the term sof the agreement, a wholly-owned subsidiary of Independence will spend initial expenditure of a minimum of $350,000 on the project within 24 months.
Once the initial expenditure has been reached the subsidiary may elect to continue to spend an additional $3 million within four years to earn a 75 per cent interest in the project, otherwise the subsidiary can withdraw at its election at any time provided the project tenement remains in good standing.
Apollo considers Independence Group’s interest to be a ringing endorsement of its conceptual targets in the emerging nickel-copper sulphide province.
“The entrance of Independence into the project is an endorsement of the potential for magmatic mineralisation styles in the area and will allow this potential to be rapidly evaluated by an active and highly respected nickel-copper sulphide exploration team,” Apollo Consolidated said in its ASX announcement.
Apollo said the arrangement allows it to prioritise exploration efforts at its gold discoveries at the Lake Rebecca gold project near Kalgoorlie.
Should a discovery be made at Louisa under the farm-in, Apollo retains the ability to participate as a 25 per cent partner, an equity position it believes could deliver value to shareholders.
Independence intends to apply its in-house geophysical team and state-of-the-art geophysical tools to the evaluation of the prospective mafic and ultramafic intrusions identified on the tenements.
Remote sensing work is scheduled to commence in the December 2019 Quarter, followed by field programs during the 2020 dry season.