Full ownership of the Silver Swan North nickel and gold project has reverted to FerrAus after both BHP Billiton Nickel West and Mithril Resources withdrew from the joint venture, FerrAus announced in a statement to the Australian Securities Exchange.
The joint venture has been focused on identifying nickel sulphide deposits near Kalgoorlie in Western Australia, but iron ore junior FerrAus said that the project will now be more intensely assessed for its gold potential.
“The company views the gold exploration potential favourably and aims to assess the opportunity to add shareholder value by exploration or divestment,” FerrAus said in the statement.
Nickel explorer Mithril will transfer its interest back to FerrAus in return for a 1.5% net smelter return royalty on all minerals produced from the project’s licences.
Mithril also agreed to grant FerrAus an option to acquire the royalty anytime in the next three years for $225,000.