Australian minerals exploration company Argosy Minerals has announced that it has inked a joint venture farm-in deal with minerals development company Cape Lambert Resources to upgrade the Wee MacGregor copper project in Queensland.
According to the ASX Announcement, Argosy Minerals will earn up to an 80% interest in the project which is located in the Mt Isa base metals province in north-west Queensland.
Under the terms of the farm-in agreement, Argosy Minerals can earn the 80% interest by spending A$1 million on exploration over a two-year period or otherwise on making a “Decision to Mine” at the project. The company will be in charge of managing all exploration, development and mining activities at Wee MacGregor.
During the first year, Argosy is required to expend a minimum of $250,000 on the Project in order to maintain the status of the joint venture agreement.
The company also has the right to withdraw from the project at any time during the farm-in period.
“Argosy believes this Farm-in arrangement to be a good first step in re-building the assets of the Company through targeted exploration on a prospective project on which early results will determine whether or not to continue with the Farm-in, without the Company incurring significant expenditure,” Argosy said.
The Wee MacGregor Project comprises three granted mining licences located approximately 60km southeast of Mt Isa with access via the sealed Barkly Highway.