Pilgangoora Minerals Pty Ltd Enters Into Farm-In Agreement with Venus on Pilgangoora East‐Wodgina South‐Poona Lithium Projects
Farm-In Agreement on Pilgangoora-Wodgina Lithium Projects
Perth, Oct 30, 2018 AEST (ABN Newswire) - The Directors of Venus Metals Corporation Limited (
ASX:VMC) ("Venus" or the "Company") are pleased to announce that they have entered into a Farm-in Agreement with Pilgangoora Minerals Pty Ltd ("PM"). Under the Farm-in Agreement PM is to explore for lithium bearing pegmatites on exploration licences E45/4630 and E45/4684 (Pilgangoora East project located close to Pilbara Minerals) E45/4627 and P45/3004 (Wodgina South) and E20/885 and E20/896 (Poona located in the Murchison District) in Western Australia to earn an interest in these tenements and lithium and associated minerals located in relation to these tenements "Pegmatite Minerals Rights").
HIGHLIGHTS: Cash Payments to Venus On-Ground Expenditure
- On signing: PM has paid $200,000 cash to Venus to gain access to the abovementioned tenements.
- During Stage 1 Earn-In: if PM spends A$1,000,000 on-ground exploration expenditure in the first year and pays a further $200,000 to Venus at the end of year one, PM will earn a 25% legal interest in Pegmatite Minerals Rights in each of these tenements.
- During Stage 2 Earn-In: if PM spends a further A$1,000,000 on-ground exploration expenditure during year two and pays a further $350,000 to Venus at the end of year two, PM will earn a further 25% legal interest in Pegmatite Minerals Rights in each of these tenements and an unincorporated Joint Venture will be formed between Venus and PM (50-50%)
- If PM elects to proceed Stage 3 Earn-In: PM may earn a further 25% interest (Stage 3 Interest) in the Pegmatite Mineral Rights by completing a Bankable Feasibility Study in relation to Pegmatite Minerals by the end of 5th year after the date of formation of the unincorporated Joint Venture.
After the stage 3 Earn-In by PM is completed, Venus's joint venture interest (25% in Pilgangoora East and Wodgina South and Poona (E20/896) and 15% in Poona E20/885) will be free carried until a decision to mine is made by the joint venture operating committee.
PM must use its best endeavours to arrange, on behalf of both PM and Venus, project finance for the commercial mining operation the subject to the Decision to Mine. Venus' proportion of the financing costs will be funded by PM as a Development Loan and will only be repayable by Venus from the proceeds of sale of joint venture production.
All rights in relation to minerals other than pegmatite minerals ("Other Minerals") remain 100% owned by Venus. If, in the course of undertaking commercial mining of a pegmatite mineral resource, an otherwise economically extractable amount of Other Minerals is extracted, Venus must pay the PM a 1.5% net smelter royalty in respect of those Other Minerals.
About Venus Metals Corporation Limited
Venus Metals Corporation Limited (ASX:VMC) is a West Australian based Company with a focus on gold, base metals, vanadium and lithium exploration projects. The Company aims to increase shareholder value through targeted exploration success on its projects.
The Company's major gold project is the Youanmi Gold Mine, located 500km north-east of Perth. The Youanmi Gold Mine is now jointly owned by Venus Metals (30%) and Rox Resources Limited (70%); Indicated and Inferred Resource of the mine is in excess of 3 million ounces of gold.
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