THE BOURSE WHISPERER: Marindi Metals (ASX: MZN) has struck a binding Memorandum of Agreement (MoA) with Japanese resources group, Japan Oil, Gas and Metals National Corporation (JOGMEC).
Marindi Metals said the deal enables JOGMEC to earn-up to a 70 per cent interest in Marindi’s Caranbirini zinc project, located in the McArthur River zinc province in the Northern Territory.
Under the terms of the MoA, JOGMEC will have an exclusive right to earn up to 70 per cent in the project by sole funding $4 million of exploration in two stages over three years.
In the initial two year earn-in period, JOGMEC can earn up to 51 per cent by spending $2 million at Caranbirini then earn the further 19 per cent interest by spending an additional $2 million in year three.
Marindi’s 100 per cent-owned Caranbirini project comprises six tenements (EL31424, EL25313, EL28006, EL28007, EL28951 and EL28952) and is located on the Emu Fault Corridor immediately north of the McArthur River zinc mine owned by Glencore, and north-east of the high-grade Teena zinc deposit owned by Teck.
Marindi considers the tenements as highly strategic claiming they represent the only major holding within the Emu Fault Corridor in the central MacArthur River Basin not under the control of a major mining house.
“We are extremely pleased to be working with such a high calibre international partner in JOGMEC to enable the true potential of our highly prospective and strategic Caranbirini project to be properly evaluated,” Marindi Metals managing director Joe Treacy said in the company’s announcement to the Australian Securities Exchange.
“We consider this agreement, which follows several months of discussions with JOGMEC, represents a very significant vote of confidence in both the prospectivity of the Caranbirini project and Marindi’s exploration expertise.
“Significantly, once the definitive agreement has been executed, our partnership with JOGMEC will both ensure funding for a comprehensive exploration program at Caranbirini, as well as enable Marindi to continue its intensive ongoing exploration programs in Western Australia, namely for lithium at Forrestania and for gold and base metals at the Newman and Bellary Dome projects in the Pilbara.”