Antipa Minerals Ltd (ASX: AZY) has welcomed the decision by IGO Newsearch Pty Ltd to assume management of the farm-in agreement on the Paterson Project in the Paterson Province of Western Australia.
IGO’s decision to assume management of the Paterson Project follows the satisfactory completion of the initial commitment of A$4 million exploration expenditure, which it had to complete within the first 2.5 years of commencement of the Paterson Project farm-in agreement (initial stage completed in first 1.5 years).
The next stage requires IGO to spend a further A$26 million of exploration expenditure by January 2027 to earn a 70% joint venture interest in the Paterson Project.
IGO’s management of the operations of the Paterson Project will take effect in March 2022.
Farm-in Terms
The farm-in agreement with IGO requires the following expenditure to be incurred and paid by IGO to earn a 70% joint venture interest:
- Initial A$4 million minimum exploration expenditure by January 2023 to be managed by Antipa. This has now been satisfied. No joint venture interest was earned by the incurring of this amount.
- Further A$26 million exploration expenditure by January 2027 to earn a 70% joint venture interest which IGO has now elected to manage.
- Upon joint venture formation, IGO shall free-carry Antipa to the completion of a Feasibility Study
