Goldminex has signed a farm in agreement with Vale for its PNG copper projects.
The agreement will see Vale spend approximately US$20 million over the next four year, which will allow it to earn a 51% interest in the tenements.
According to Goldminex, US$ 5 million must be funded within the first year, after which Vale has the option of withdrawing from the agreement.
The Australian miner retains all rights to the nickel found on its tenements.
The funding will pay for exploration and development of Goldminex’s porphyry copper gold projects in Papua New Guinea’s Owen Stanley ranges.
Goldminex will manage the exploration programs initially, with Vale holding the right to take over after one year.
John Downie, Goldminex chairman, said the company is “delighted with this agreement with Vale…which underlines the scale and potential of our assets in Papua New Guinea”.