Cockatoo Coal has entered into a joint venture agreement between Independent Coal Pty Limited, a wholly owned subsidiary which holds 100% of the Dingo project, and Aston Dingo Pty Limited, part of the Aston Resources Group, to explore and assess the feasibility of the development of the Dingo project.
A key principle of the joint venture is that Independent does not incur any funding obligation prior to the expenditure of $9.0 million or the completion of a three phase exploration program and feasibility study (whichever comes first) by Aston. Thereafter, if necessary, joint venture expenditure shall be funded proportionate to the parties’ joint venture interests.
Cockatoo Coal has advised that Aston has earned a 30% participating interest in the joint venture by the completion expenditure of $1.5 million on the Dingo project.
Aston has advised that they are proceeding to Phase 2 of the JV which enables them to increase their interest in the joint venture to 51% by the further expenditure of $2.5 million.