Corcel plc has signed a farm-out and joint venture agreement for its recently acquired rare earth elements (REE) project at Mt Weld in Laverton, Australia.
MT WELD
In early December 2022, the company acquired licence P38/4489 holding a granted mineral tenement, located 1.4km (0.9 miles) west-north-west of Lynas Rare Earths Ltd’s Mt Weld REE mine.
The project covers 171 hectares and the tenement straddles the mine access road to Lynas’s Mt Weld mine.
TERMS
The deal will see partner Riversgold Ltd immediately pay AU$30,000 in cash to Corcel.
Riversgold will earn a 50% interest in the project by paying 100% of the work programme, spending AU$500,000, which is expected to complete in 2023.
Corcel can also allow the farm-in of a further 20% for an additional AU$1,000,000 to continue the work programme.
The minimum initial carried spend is AU$100,000.
Riversgold will operate the tenements and direct the exploration programme on behalf of Corcel.
POTENTIAL
Chief executive Scott Kaintz said that Riversgold’s experienced exploration team was well positioned to lead the work on the ground in Australia.
“We are delighted to follow directly our acquisition of Mt Weld with a farm out of half of the position to fund 100% of the near-term development and exploration costs.
“This is highly accretive against our acquisition cost and further reinforces the board’s view of the project’s immediate potential upside and overall attractiveness.”