OZ Minerals and IMX Resources this morning announced a joint venture proposal to explore and develop copper-gold projects on the latter’s Mt Woods tenements in South Australia.
The two companies have signed a binding heads of agreement with the intention of forming the joint venture.
In a statement released today, OZ Minerals said the Mt Woods areas were prospective for similar types of deposits to its nearby Prominent Hill mine and were therefore a high exploration priority.
IMX will retain the rights to any predominantly iron ore discoveries.
According to IMX managing director Duncan McBain, the proposed joint venture is a win-win situation that will result in a greatly increased level of exploration expenditure during the next five years.
“We intend to be a very active joint venture partner,” he said.
“With IMX retaining the rights where iron ore is the dominant economic mineral, it means we are able to continue to expand our iron ore strategy in the Cairn Hill-Mt Woods area.”
OZ Minerals managing director Terry Burgess said the agreement would benefit the shareholders of both companies.
“The proximity of the tenements to the existing Prominent Hill mine infrastructure greatly enhances the chance of an economic discovery,” he said.
In addition to the exploration agreement, IMX has agreed to place 26,150,000 fully paid ordinary shares, representing 15% of its issued capital, to OZ at 38.5 cents per share.
IMX will receive more than $10 million from the placement, while OZ will take a 13% holding.