WA miner Estrella Resources (ASX: ESR) has signed an incorporated Joint Venture and Royalty Deed with state-run Murak Rai Timor (MRT) for the formation of Estrella Murak Rai Timor (JV) to explore for and potentially exploit mineral deposits in Timor Leste.
ESR will hold 70% interest in the JV, to be headquartered in Dili, with MRT holding the remaining 30% interest.
“Yesterday’s formal signing ceremony in Dili between Estrella and Murak Rai Timor to form Estrella Murak Rai Timor represents a significant milestone for our company in Timor Leste,” Estrella Managing Director Chris Daws said.
“The next steps now are for the JV company to get out on the ground and ramp up exploration across the three granted EEL’s with an initial focus along the highly prospective Noni Formation where thick manganese-rich bands have been uncovered just below the surface. Proposals are well underway for trenching and drilling to assist in the quantification of the high-grade manganese material and I look forward to updating the market on the JV’s progress within the EEL’s.”
The JV will wholly own the previously granted Exploration and Evaluation Licenses (EEL’s) – ZA001, ZA002 and ZA003. The three EEL’s cover a total landholding of 121.5 sq. km and are highly prospective for manganese mineralisation.3
Under the terms of the deed, the JV will see MRT free-carried at 30% ownership up until the completion and publication of a Feasibility Study over a deposit located within each of the EELs. In addition, ESR will be solely responsible for the funding requirements of the Company in accordance with the annual programme up until the completion and publication of a Feasibility Study.
In addition, MRT and ESR have entered into a Royalty Deed whereby MRT can elect to transfer its 30% interest in the JV to ESR following the completion of the Feasibility Study in respect of the EEL(s) and receive a 2% royalty on the Net Smelter Return (NSR) on all minerals produced from the area within the boundary of the EEL(s).
The eight Reconnaissance Permits (RP’s) surrounding the EEL’s, and which total 382.2 sq. km, are 100% owned by Estrella and do not currently form part of JV Company. RP’s entitle the holder to conduct mapping and sampling within the Permit area for 12 months with an additional six-month extension if required.
The holder of the RP has a pre-emptive right in the grant for an Exploration or Mining License up to the expiry of the Permit. Upon Conversion of any granted RP’s to EEL’s MRT shall be entitled to a 30% free-carried interest and the EEL’s will come under the same terms as the currently granted ZA001, ZA002 and ZA003 EEL’s.
MRT was set up in September 2023 by the Timor-Leste Government as the Timor-Leste National Mining Company to be capable of participating in the mining of mineral resources on behalf of the Republic.
MRT is run by the former Vice President of the ANPM before its recent split into separate petroleum (ANP) and mineral departments (ANM).
