Andromeda Metals and Minotaur Exploration have announced they will form a joint venture (JV) for $5 million in exploration funding at Andromeda’s 100 per cent-owned Rover copper-gold project in Tennant Creek, Northern Territory.
Under the terms of the agreement, Minotaur has the right to bring in a funding partner and will fund up to $5 million over a six-year period to earn up to a 75 per cent interest in the project — the company will earn an initial 51 per cent interest if it spends $2 million and 75 per cent if it spends a further $3 million within the timeframe.
Minotaur must also spend a minimum of $400,000 within nine months before it is able to withdraw from the JV. The company will launch ground exploration (including a trial electromagnetic geophysical survey) at the site next week as part of its 60-day due diligence period.
The Rover project is the site of numerous high-grade historical discoveries from the 1960s and 1970s — the Tennant Creek district as a whole has produced over 5.5 million ounces (Moz) of gold and 480,000t of copper— and was acquired by Andromeda in 2005 from Newmont Australia.
Other notable Andromeda projects include two 100 per cent owned Drummond Basin tenements in Queensland, nine tenements at the Eyre Peninsula in South Australia, and the 100 per cent owned Moonta project at the Olympic Dam in South Australia. Andromeda’s Rover site is also adjacent to Westgold Resources’ lucrative Rover 1 deposit.