Mithril Resources welcomes Chesser Resources as Kurnalpi Farm-in partner

THE BOURSE WHISPERER: Mithril Resources (ASX: MTH) has executed a Binding Letter Agreement with Chesser Resources (ASX: CHZ).

Under the terms of the agreement Chesser can earn up to an 80 per cent interest in two tenements Mithril has recently been granted (EL28/2506 and PL28/1271) located at the company’s Kurnalpi project, approximately 60 kilometres north east of Kalgoorlie in Western Australia.

Chesser will be required to reimburse Mithril’s tenement acquisition costs and complete exploration expenditure of $250,000 over four years.

The two new Kurnalpi project tenements are both wholly-owned by Mithril and cover Archaen ultramafic / mafic sequences, which the company considers to be prospective for both nickel sulphide and lode gold mineralisation.

The terms of the farm-in agreement are as follows:

Chesser will reimburse Mithril its tenement acquisition costs ($17,389);

Chesser can earn an initial 51 per cent interest in the two tenements by completing expenditure of $150,000 over two years;

Chesser can elect to earn an additional 29 per cent interest through further expenditure of $100,000 over a further two years (in total 80 per cent by spending $250,000 over four years);

Once Chesser has earnt 80 per cent interest, Mithril has the right to contribute on a pro rata basis or dilute as per industry standard formula. If Mithril’s interest dilutes below 10 per cent it will be deemed to have withdrawn and will be entitled to receive a 1.5 per cent Net Smelter Royalty on all minerals;

Chesser is required to keep the tenements in good standing at all times and can only withdraw (following 30 days’ notice) if the tenements are in good standing; and

The agreement is subject to Chesser obtaining Ministerial Consent within 30 days of executing the Letter Agreement.

“The introduction of a new farm-in partner for the Kurnalpi project is significant as it not only sees externally – funded exploration activities commence at the project, but allows Mithril to maintain its focus on the emerging Stark copper-nickel-PGE discovery which is located 80 kilometres south east of Meekatharra in Western Australia,” Mithril Resources said in its ASX announcement.

In its complementary announcement, Chesser said it would continue to carry out a strategic review of investment opportunities available to the company taking into consideration its cash reserves, which currently total a comfortable $4.25 million.

Email: admin@mithrilresources.com.au; info@chesserresources.com.au;

Website: www.mithrilresources.com.au; www.chesserresources.com.au;