THE BOURSE WHISPERER: Trafford Resources (ASX: TRF) has struck a Farm-In agreement with Alloy Resources (ASX: AYR) on Trafford’s Lynas Find gold project, located approximately 100 kilometres south of Port Hedland in the West Pilbara region of Western Australia.
The Lynas Find project comprises twelve Prospecting Licenses and one Exploration License over two contiguous blocks, known as the Iron Stirrup Block and Mount York Block.
Lynas Find project tenements location and local geology. Source: Company announcement
“Trafford is proud to partner with Alloy and looks forward to working together to develop the economic potential of the project,” Trafford Resources said in its ASX announcement.
Under the terms of the agreement Alloy Resources has the right to earn an initial 51 per cent interest in each of the tenements located within the Lynas Find gold project by spending $500,000 within the first 12 months.
This initial expenditure is to include a minimum of 2,000 metres of reverse circulation or diamond drilling.
Alloy will then have the right to earn a further 29 per cent interest by spending an additional $1,000,000 in years two and three.
The agreement is subject to a period of due diligence to be conducted by Alloy.
Once it has completed due diligence to its satisfaction Alloy pay Trafford $50,000 and 10,000,000 fully paid ordinary shares of Alloy, at a deemed issue price equal to the VWAP of Alloy Shares for the 30 days prior to the date of issue.