Riva Resources has secured an exploration agreement with Rosslyn Hill Mining that gives it the opportunity to take a 75 per cent share in the cobalt, gold and copper rights at the Paroo Station lead mine in Western Australia.
Under the memorandum of understanding (MOU), Riva – formerly Dragon Energy – can earn the majority interest by providing $6 million for exploration over a four-year period.
The MOU provides Riva with access to Paroo Station’s 46 square kilometre tenement package, including infrastructure and services at the mine site.
In an ASX announcement, Riva stated that the MOU provided the company with a large, prospective land holding that it hoped would expand its base and precious metals interests.
Riva’s exploration footprint expands to more than 157 square kilometres through the deal, with Paroo Station connected to the Tabac cobalt-gold project recently acquired by the company. It is expected that exploration drilling will start at Paroo Station in February 2017.
Riva managing director Jonathan King said the new partnership with Rosslyn Hill was shaping up to be a highly promising joint venture.
“By securing access to key infrastructure and providing a base for operations, this MOU strengthens Riva’s position in what represents a potentially substantial cobalt exploration opportunity,” King said.
Rosslyn Hill is a wholly-owned subsidiary of Toronto Stock Exchange-listed, LeadFX.