Joint Venture announcements

THE BOURSE WHISPERER: They say that earning 50 per cent of a project is better than earning 50 per cent of no project.

Plutonic Dome Gold Project Farm-In Joint Venture

Ord River Resources (ASX: ORD) has entered into a Farm-in Agreement and Joint Venture to earn up to a 75 per cent interest in the Plutonic gold project in Western Australia from Dampier Gold (ASX: DAU).

“This transformational agreement marks the beginning of Ord’s strategy to enter into the million ounce plus gold resource category and moves Ord forward towards becoming a producer in the future,” Ord River Resources managing director Frank Zhu said.

Under the terms of the JV, Ord will sole fund a minimum of $6 million in project expenditure over two years in return for up to 75 per cent interest in the Plutonic Dome tenements.

Ord is required to sole fund at least $2 million in project expenditure within the first nine months of the JV to earn 30 per cent, after which it can elect to continue or stop sole funding.

Ord will be appointed as the manager for the sole funding period and thereafter, whichever party has the highest JV interest will be the manager.

Each party will have a first right of refusal over the interest of the other party under the JV Agreement.

“We look forward to working closely with Ord to maximise the near term potential of the
Plutonic Dome project,” Dampier Gold managing director Richard Hay said.

“Over the past few months the company has been reviewing the results of its cutting edge regional 3D prospectivity model recently developed for the entire Plutonic – Marymia greenstone belt.

“A number of high-priority targets have been identified and undergone preliminary evaluation.

“Significant expenditures are now required to effectively drill test these targets. It is envisaged that Ord will address high-priority targets in its work programs.”

Southern Hemisphere inks Chilean JV

Southern Hemisphere Mining (ASX: SUH) has executed a 50/50 Chilean copper/gold joint venture with global miner Lundin Mining Corporation (TSX: LUN).

The new JV wasted no time by immediately moving to secure two new high-quality acquisitions.
 
The new JV – to be known as the Los Rulos Joint Venture – builds on and expands an existing Strategic Alliance and current JV Southern Hemisphere has with Lundin Mining at the Llahuin project, where Lundin Mining is sole funding exploration and has the right to earn up to a 75 per cent interest.
 
A new Southern Hemisphere/Lundin Mining JV company (Minera Los Rulos) has been incorporated in Chile, which has executed two option agreements to purchase the Armandiño and Polvareda 2 copper-gold projects, located at Los Rulos in the Coquimbo region of central Chile.
 
“This is an important and strategic step in our relationship with Lundin Mining, which follows a highly successful collaboration over the past year at the Llahuin project,” Southern Hemisphere Mining managing director Trevor Tennant said.

“In recent months we have jointly reviewed new areas in the Coquimbo region prospective for copper-gold and after completing, mapping, channel sampling and IP surveys at both projects, selected Armandiño and Polvareda 2 as the first of the acquisitions under this new JV. Both represent stand-out opportunities and walk-up drilling targets.
 
“We like this region because of its high prospectivity and its location close to infrastructure and services.

“It is the place to be in Chile to develop large-scale porphyry copper projects in the 400-600 million tonnes size range and we are delighted to have the opportunity to work with an accomplished global miner such as Lundin Mining to identify, explore and develop new projects in this belt.
 
“Both projects have extremely favourable geology and extensive surface copper mineralisation plus artisanal mining.

“Our initial work has been very encouraging and they tick every box for us in terms of geology, location and size potential. We are very much looking forward to getting on the ground to start drilling.”