Heads of Agreement Covering Archer's West Roxby Tenements
Sydney, Dec 28, 2011 AEST (ABN Newswire) - Archer Exploration Limited (
ASX:AXE) is pleased to announce that a Heads of Agreement between Archer Exploration Limited ("Archer") and BHP Billiton Olympic Dam Corporation Pty Ltd ("ODC") covering the sale of an 80% legal and beneficial interest in Archer's five West Roxby tenements was signed on 23nd December 2011.
The Tenements host a number of undrilled exploration targets including potential IOCG targets at Island Lagoon and Evelyn Dam, a potential Athabasca unconformity uranium target at Apollo and several skarn targets.
Highlights Heads of Agreement signed between Archer Exploration Limited and BHP Billiton Olympic Dam Corporation Pty Ltd ("ODC") covering Archer's five West Roxby tenements. Key terms of these Heads of Agreement are:
- ODC to acquire an 80% legal and beneficial interest in the five Tenements for $3 million.
- ODC to spend $3 million on Exploration over a period of 3 years.
- ODC will sole fund the Project to a maximum of $50 million to a Decision to Mine.
- Archer and ODC agree to establish a Joint Venture to carry on the Project with ODC as Manager.
- Archer has the right to sell its participating interest at any stage before and on the Decision to Mine.
- Pre-emptive rights apply.
- Exclusivity has been agreed until 30 April 2012. These Heads of Agreement contemplates the finalisation of a Sale and Purchase Agreement and a Joint Venture Agreement prior to 30 April 2012. The Sale and Purchase Agreement will be subject to Ministerial consent. The Sale and Purchase and Joint Venture Agreements are conditional on ODC conducting further non-geological Due Diligence.
Contact
Mr Greg English
Chairman
Archer Exploration Limited
Tel: (08) 8272 3288
Mr Gerard Anderson
Managing Director
Archer Exploration Limited
Tel: (08) 8272 3288
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