Emmerson Resources has officially signed the Tennant Creek Mineral Field Exploration Joint Venture with Ivanhoe.
According to the company, the agreement will provide the financial and technical resources required to aggressively explore the gold tenement.
As part of the agreement, Ivanhoe will solely fund $18 million of expenditure over a maximum of three years, gaining a 51% interest in the majority of Emmerson’s tenements.
In order to retain the 51% interest, Ivanhoe will subsequently have to provide $10 million over a further five years.
Additionally, Ivanhoe can earn 70% interest in individual projects if it funds expenditure to define a minimum one million gold equivalent ounce resource hurdle.
Emmerson has retained all ‘Tier 2’ projects, which contain less than a 250,000 gold equivalent ounce resource.