Australian gold and nickel company, Rox Resources has entered into a binding terms sheet with Cullen Exploration, allowing the company to earn up to a 75 per cent interest in Cullen’s Mt Eureka tenements.
|Location of Mt Fisher gold and nickel project|
Rox’s Fisher East nickel deposits (4.2Mt at 1.9 per cent Ni for 78,000t = contained nickel)1 occur along an ultramafic flow ‘basal contact’ which, along strike, extend into Cullen’s Mt Eureka Project. The Company’s experience and knowledge gained from its extensive exploration at Fisher East puts Rox in a strong position to effectively and quickly explore and develop drill targets for the project.
Managing Director, Alex Passmore says that the company is very pleased to be entering into this agreement with Cullen Resources at a time when the nickel market is strengthening.
“The Fisher East nickel project discovered by Rox is one of the most substantial nickel finds in recent times and with this acquisition we aim to build on the substantial mineral resources already identified,” added Mr Passmore.
Under the agreement, Rox may earn a 51 per cent interest by spending AU$1 million on exploration expenditure within a three-year period from satisfaction of certain Conditions Precedent (Stage 1 Earn In). If Rox earns the 51 per cent interest, it can elect to earn a further 24 per cent interest by expending a further AU$1 million on exploration expenditure over a three-year period, commencing at the end of the Stage 1 Earn In.
Upon Rox earning 51 per cent or, if it earns the additional 24per cent, upon Rox earning 75 per cent, the parties will be associated in an unincorporated Joint Venture in relation to the Joint Venture Tenements, which will include certain Rox tenements and applications.
Cullen will receive AU$40,000 cash upon satisfaction of one of the Conditions Precedent.
Rox must spend a minimum of AU$333,334 and ensure the Cullen tenements are in good standing on a daily pro rata basis before it may withdraw.
If Rox earns 75 per cent, Cullen will be free-carried, with no liability for any Joint Venture costs, until completion of a Pre-Feasibility Study.
If Rox only earns 51 per cent or earns 75 per cent and completes a Pre-Feasibility Study, thereafter Cullen must contribute to Joint Venture costs pro-rata, or dilute under a standard dilution formula.
The Mt Eureka nickel and gold project is located in the Northern Goldfields, about 600 kilometres northeast of Kalgoorlie and immediately to the north of Rox Resources’ Mt Fisher Gold and Fisher East Nickel Projects.
The Mt Eureka Greenstone belt represents the northernmost 40 strike kilometres of the contiguous Mt Fisher – Mt Eureka belt. The strike length of prospective ultramafic stratigraphy on the Mt Eureka Group of tenements is extensive with the prospective basal contact unit extended from Rox’s tenure onto the Mt Eureka tenure.