GreenTech Metals (ASX: GRE) and Anax Metals (ASX: ANX) have signed a Memorandum of Understanding (MoU) to investigate the copper potential of a highly prospective area in WA’s Pilbara region.
The two companies will jointly assess the potential to treat GreenTech’s base metal assets with a focus on GreenTech’s wholly-owned open-pittable Whundo deposit at the fully-permitted Whim Creek Processing hub.
“This is a great opportunity for GreenTech that could see a formalised alliance with Anax taking significant steps towards establishing near-term mining operations at our Whundo Project,” GreenTech’s Managing Director Tom Reddicliffe said.
“Our project already has defined open-pittable copper and zinc resources and potential to define additional near surface resource tonnes at both Yannery and Ayshia. The alliance could be the catalyst that the West Pilbara needs to become a significant copper producer and we look forward to working closely with Anax to make this a reality.”
The proposed Whim Creek Project (80% owned by Anax and 20% owned by Develop Globa) will consist of a new concentrator, and a refurbished heap leach facility capable of treating oxide, transitional and supergene ore.
Whim Creek is located northeast of GreenTech’s Whundo deposit, 40km south of Karratha.
MoU terms
Under the agreement, each party will contribute resources and information to the joint assessment that will focus on technical studies and regulatory approvals at Whundo. The joint assessment will assist the parties in developing terms for a legally-binding agreement that allows for GreenTech base metal assets to be processed at Whim Creek. Transaction options being considered include (without limitation) an outright asset sale/purchase agreement, joint venture or joint mining and funding agreements.
The parties are forming a Pilbara Base Metal Alliance which is envisaged to consist of base metal explorers that are seeking to monetize assets that are within trucking distance of Whim Creek.
While the joint assessment is underway, GreenTech will continue to progress exploration at its 100%-owned under-explored Austin, Shelby and Yannery prospects where recent drilling intersected significant copper mineralisation.