CARAWINE Resources (ASX: CWX) has entered into a farm-in and JV agreement with Fortescue Metals (ASX: FMG) to explore eastern Paterson copper, gold and base metals project tenements in WA.
Carawine’s Lamil Hills, Trotman South tenements, near Newcrest’s Telfer gold and copper mine, and Sunday tenement, next door to Metals X’ Maroochydore copper-cobalt deposit, are still in early stages of exploration, with Carawine’s work to date mostly comprising target generation activities based mostly on work by previous explorers.
FMG will pay $125,000 cash up front and have a minimum obligation to spend $500,000 within the first 18 months of the agreement.
The agreement gives FMG the right to earn up to 75pc interest by spending $6m over two stages.
Stage one would earn the company 51pc after $1.5m exploration spend within three years, at which point a JV would be formed.
Stage two would earn the company a further 24pc interest with an additional $4.5m spend within four years.
The agreement comes hot off the heels of a $6m farm-in and JV agreement with Rio Tinto (ASX: RIO) inked last month that would focus on the Baton and Red Dog tenements.
Carawine managing director David Boyd said the agreement is a great opportunity for the company.
“With the addition of Fortescue as a partner in the Paterson, we now have two major resource companies funding exploration on out Paterson tenements,” he said.
“This agreement gives Fortescue access to under explored tenements over highly prospective ground.
“This deal ensures Carawine is well positioned to share in the benefit of any discoveries, with Fortescue well placed to support a potential development should the exploration activities be successful.
