Carawine Resources Limited (ASX:CWX) has entered and FMG Resources have into an amended agreement to include Carawine’s “Eider” tenement in the Coolbro JV in Western Australia.
Eider is 35km southwest of Newcrest’s Telfer gold operations and 35km southeast of Metals X’s Nifty copper operations in the highly prospective Paterson province.
Carawine Managing Director David Boyd said this addition to the Coolbro JVA maximises the chances of discovery on the Eider tenement, being immediately adjacent to exploration licences already held by Fortescue.
Although at an early exploration stage, Eider has an excellent address and is considered highly prospective,” Mr Boyd said,
“Fortescue have agreed to complete an airborne geophysical survey and drilling program before they can earn an interest in the tenements, thereby providing a commitment to exploring the tenement along with our other Coolbro JVA tenements.
“The first stage of Fortescue’s exploration program is expected to commence soon, with Fortescue indicating its intention to include the tenement in upcoming Heli-EM surveys planned over the Coolbro JVA tenements, expected to commence during Q3/Q4 2020.”
Key terms of the Amended Agreement include:
- Fortescue will pay Carawine $50,000 in cash within 30 days of the later of execution of the Amended Agreement and receipt of a tax invoice (“E45/5528 Payment”).
- Fortescue has the right to earn a 51% interest in the expanded Coolbro JVA tenements by spending an additional $100,000 on exploration, inclusive of the E45/5528 Payment (total Stage 1 earn-in amount increased to A$1.6 million, to be spent within three years from 12-Nov-2019).
- Before earning a 51% interest in Eider Fortescue must also (either as part of, or in addition to, spending the Stage 1 earn-in amount) complete a helicopter electromagnetic survey of a minimum of 60-line kilometres and a minimum of 1,000 metres of drilling on Eider.
