Posted on 10 May 2023
Australian miner Venus Metals has entered a binding transaction with IGO regarding exploration, development, and mineral extraction at the Henderson nickel-lithium project in Western Australia, Kallanish notes.
Under the deal, IGO can progressively acquire up to a 70% interest in the project by incurring AUD 4 million ($2.71m) of exploration expenditure on the project and reimbursing Venture Metals AUD 1m.
IGO will sole fund all joint venture expenditure until the completion of a pre-feasibility study in relation to the project.
If IGO completes a pre-feasibility study it has the right to acquire Venus's 30% interest in the project for a price based on fair market value less an apportioned aggregation of IGO expenditure incurred in relation to the project.
Should IGO elect not to acquire the 30% interest, the parties will continue to be associated in an unincorporated joint venture.
Henderson covers an approximately 800 km2 area in the central section of the Western Australian Yilgarn Craton and includes about 25 km strike length of the Mt Ida/Ularring Greenstone Belt.
This Greenstone Belt is historically known for its gold and nickel potential but more recently is also recognised as an emerging location for lithium following the discovery of significant spodumene deposits near the historical Mt Ida Gold Mine by Red Dirt Metals.
Source:Kallanish
