First Quantum Minerals (FQM) has partnered with Dreadnought Resources to develop the Mangaroon gold and base metals project in the Gascoyne region of Western Australia.
The joint venture (JV) agreement presents FQM with the right to acquire a 51 per cent interest in the nickel-copper-platinum-group-elements (PGE) and gold project should it contribute $15 million to its exploration.
Additionally, FQM can earn an extra 19 per cent interest by sole funding the project until a decision to mine is made.
FQM has committed $700,000 to the JV agreement, with a further contribution of $2.3 million to be made over the next 18 months.
The Mangaroon project is a virtually unexplored plot of land, around 4000 square kilometres in size, with evidence of outcropping 500 kilometres south-west of Port Hedland.
Dreadnought began exploration in mid-March 2021.
Dreadnought managing director Dean Tuck said the agreement with FMQ was a great endorsement for the company.
“Finding a partner for Mangaroon is a significant validation of our project generation work and the potential to host high tenor massive sulphides,” Tuck said.
“Importantly, Dreadnought retains the rights to any potential gold discovery. We are excited to be managing the early stages of exploration and working with FQM in our search for a significant discovery.”
FQM is a Canadian organisation with eight mines across four continents, with three more mines under development. It focusses on copper, nickel and gold.
Assuming the above conditions are met, FQM will be required to fund a balance of $12 million by March 2026 or withdraw from the venture.