IGO investments to guide growth potential

The Nova site. Image: Independence Group

Independence Group (IGO) has secured a series of investments in junior explorers in Western Australia, strengthening the company’s potential for growth.

The deals include a farm-in with Buxton Resources, as well as separate investments in Legend Mining and Encounter Resources.

IGO has formed a joint venture with Legend and private investor Mark Creasy at the Rockford nickel-copper project, as well as a separate JV over three of Legend’s tenements in the Fraser Range.

Perth-based IGO will also pay Legend $9.8 million in two tranches in return for more than 272 million shares, giving it an eventual 14.18 per cent in the junior company.

IGO has also acquired two more tenements for its West Kimberley joint venture with Buxton Resources through a farm-in with exploration company Baracus, adding a further 560 square kilometres of prospective land to the JV’s project area.

The three parties are involved in a deal where IGO and Buxton can secure up to 80 per cent of the JV by spending $550,000 over a two-year period, with IGO owning 64 per cent, Buxton 16 per cent and Baracus 20 per cent.

With the addition of the two tenements, this means the West Kimberley JV and Buxton’s standalone tenure cover over 4300 square kilometres.

As reported this week, IGO also invested in Encounter Resources to maintain its 9.2 per cent stake in the company following a share purchase by Silver Lake Resources, which acquired a 5.3 per cent interest.

Encounter holds a 2000 square kilometre tenure in the Paterson Province that contains several exploration projects, including the highly prospective Telfer West gold system. 

IGO completed an older investment in June by completing a February 2018 farm-in agreement with Arrow Minerals. The company secured 90 per cent of the Plumridge nickel project from Arrow after spending over $5 million on the project in just 17 months.

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