Rumble Resources and AIC Mines have signed an earn-in and exploration joint venture agreement to develop the Lamil gold-copper project in the Paterson Province, Western Australia.
The Lamil project is near Rio Tinto’s Winu and Greatland Gold’s Havieron discoveries. Geophysics work at Lamil shows the project contains properties similar to the nearby Telfer Dome, which hosts Newcrest Mining’s Telfer gold-copper mine.
Rumble announced it had received interest from a “large number of parties” given the project’s Tier 1 jurisdiction, favourable location and shallow first order targets.
“Rumble completed a very competitive JV process for the Lamil project and carefully considered all aspects of the proposals received to ensure maximum benefit to Rumble shareholders,” the company stated.
“As a result of the process undertaken, Rumble identified AIC as the ideal strategic partner that has not only the right technical capability and funding to complete significant exploration on the Lamil project but also has substantial experience in project development.”
AIC, primarily known for its Marymia exploration project near Sandfire Resources’ DeGrussa mine in the Gascoyne region, will spend up to $10 million for a right to earn a majority share of the Lamil project.
The company will subscribe to 4.16 million new Rumble shares at a cost of six cents per share for an initial figure of $250,000.
AIC can earn the right to a 50 per cent interest in Lamil by spending a further $6 million over a four-year period. It will then issue $250,000 worth of AIC shares to Rumble and subscribe for a further $250,000 of new Rumble shares.
The company also has the right to earn a further 15 per cent of the project for a 65 per cent total of the project by spending $4 million over one year if Rumble chooses not to contribute to the JV.