Resource giant IGO Limited has lifted its presence within Western Australia-based Buxton Resources by entering into three inter-dependent transactions with the company.
Buxton and IGO already have a deep commercial and technical relationship with four active joint ventures in the Fraser Range and West Kimberley regions of WA. Significantly, IGO is Buxton’s largest shareholder.
The transactions are:
- Merlin project joint venture amendment
Buxton’s 2015 discovery of high-grade primary magmatic sulphides at the Merlin project confirmed better than economic grades and thicknesses for the first time in the region.
The transaction constitutes an amendment to the existing JV agreement, with IGO agreeing to pay Buxton $1 million to acquire a further 29 per cent JV interest in lieu of IGO incurring the remainder of in-ground earn-in expenditure.
- Narryer project transaction
The Narryer terrain forms part of the Western Yilgarn margin which hosts the world class Julimar Ni-Cu-PGE resource discovered by Chalice Mining in March 2020.
This transaction consists of a subscription agreement and option agreement and a separate earn-in and JV agreement. IGO agrees to subscribe for the number of shares in Buxton to take its voting power from its current 15.08 per cent to 19.9 per cent.
Out of the subscription proceeds, Buxton will spend a minimum of $450,000 on an airborne EM survey and ground follow-up over priority areas of the Narryer group of tenements.
- Copper Wolf project transaction
The Copper Wolf project hosts a large Co-Mo enriched Laramide porphyry system extending over an area of about 12 square kilometres in Arizona, USA.
Under this agreement, IGO has an exclusive right to earn a 51 per cent interest in the Copper Wolf tenements by sole funding expenditure totalling $350,000 within two years.