Carawine Resources Limited (ASX:CWX) has confirmed that FMG Resources Pty Ltd has has satisfied the conditions required to earn a 51% beneficial interest in the Coolbro JV tenements in the Paterson Province of Western Australia.
In a previously announced farm-in and joint venture agreement, Carawine and FMG Resources Pty Ltd, a wholly owned subsidiary of Fortescue Metals Group Ltd, Fortescue has the right to earn up to 75% interest in the Lamil Hills, Trotman South, Sunday and Eider tenements the Paterson Province of Western Australia, by spending $6.1 million in two stages over a seven-year period to the end of 2026.
Under the terms of the agreement, a joint venture will be formed between the two parties with the initial interest being Fortescue 51% and Carawine 49%, with Fortescue as manager of the joint venture.
Fortescue has up to four months to elect to earn an additional 24% interest in the tenements by spending $4.5 million (in addition to the $1.6 million incurred to satisfy the Stage 1 Earn-In) on exploration by the end of 2026 during which Carawine will be free carried. Fortescue advise that as of 30 November 2022 approximately $2.4 million had been spent on exploration on the Coolbro JV tenements.
