Orion Gold has entered a joint venture with Independence Group (IGO) for the Fraser Range nickel-copper project in Western Australia.
Under the agreement, IGO will acquire 70 per cent equity in Orion’s tenements, 60 per cent in the Creasy joint venture tenements and 65 per cent in the Geological Resources tenement for $700,000.
It will also involve a $1.3million placement by IGO in Orion at 2.4c per share.
The agreement aligns with Orion’s decision to place greater focus of its resources and activities on its more advanced Areachap zinc-copper and gold projects in South Africa.
Orion Gold managing director and CEO Errol Smart said, “This is a very important transaction for Orion which secures the involvement of the dominant player in the Fraser Range belt in the ongoing exploration of our highly prospective tenement holding.
“Orion will benefit from IGO’s extensive expertise in the region, particularly the knowledge they have gained through the development and operation of the world-class Nova-Bollinger project and their ability to fund ongoing exploration programs.”