Auris Minerals has made a deal with miner Sandfire Resources for a farm-in at two high-grade copper projects in the Bryah Basin, Western Australia.
The projects are Doolgunna, which is 100 per cent owned by Auris; and Morck’s Well East joint venture (JV), which is 80 per cent owned by Auris, 20 per cent by Fe.
Both projects are located in a portion of the Bryah Basin that includes Sandfire’s own DeGrussa and Monty JV copper-gold projects.
Sandfire will pay Auris $1.2 million and Fe $300,000 for the right to earn interest on the two projects, and has also agreed to a $2 million minimum exploration spend over the next two years. Following completion of this $2 million minimum spend, Sandfire can also continue to fund sole exploration.
In order to earn interest on the projects, Sandfire must define a mineral resource containing no less than 50,000 tonnes of JORC 2012-compliant copper or equivalent metal with a 50 per cent or greater indicated classification, at which point Sandfire can perform a feasibility study.
Once this feasibility study is fulfilled and all other parameters are met, Sandfire can earn up to a 70 per cent interest on the Doolgunna and Morck’s Well projects.
Auris will then receive 30 per cent interest on Doolgunna and 24 per cent on Morck’s Well, with the remaining six per cent to go to Fe.
Auris chief executive officer Wade Evans was pleased with the deal. “Sandfire have proved themselves to be very successful explorers with both the DeGrussa and Monty discoveries,” said Evans, “and Auris is pleased to have the expertse of the Sandfire team explore this part of our ground while we continue to explore our substantive holdings in other parts of the basin.
“The transaction will also bolster our already significant cash resources enabling the board to consider other opportunities for Auris.”