Aus Tin Mining has inked a farm-in agreement over three exploration licences prospective for copper and gold within the Lachlan Fold Belt in New South Wales.
The deal represents Aus Tin’s “renewed exploration focus” as the company bids to diversify its exploration portfolio.
The agreement was struck with Lachlan Copper, a company that is associated with Aus Tin’s third largest shareholder, Australian Mineral Investments.
As part of the upfront payments, Aus Tin will issue Lachlan Copper $50,000 worth of shares and, subsequent to a proposed capital raising, pay $50,000 in cash.
Both companies plan to commence work before the end of the month.
“Aus Tin Mining is pleased to have agreed commercial terms to farm-in on tenements prospective for copper and gold within the Lachland Fold Belt, a region that is experiencing an exploration renaissance on the back of success from groups such as Alkane Resources, Sky Metals and Magmatic Resources,” Aus Tin chief executive Peter Williams said.
“The company will seek to leverage its expertise in obtaining regulatory approvals at Taronga in northern New South Wales to secure land access as soon as possible and utilise a similar exploration model successfully deployed at Mt Cobalt in Queensland to initially explore a copper porphyry target at Narallen that is untested by drilling or modern exploration techniques.”
Aus Tin stated its immediate focus would be the Narallen prospect located at the southern end of the Molong Volcanic Belt.
Lachlan Copper also considered Koorawatha and Murringo prospective for VHMS, magmatic copper targets and multi-million ounce McPhillamys style gold targets.
Under the agreement, Aus Tin is required to spend $500,000 on the three licences over two years to earn an initial 51 per cent interest.
Additionally, the company has the option to spend a further $5 million over five years to earn an additional 29 per cent to total 80 per cent in interest.