Tertiary Minerals plc’s 96% owned Zambian subsidiary, Tertiary Minerals (Zambia) Ltd (TMZ), has agreed a full joint venture for the Jacks copper exploration project in Zambia.
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The move follows the option agreement in August 2021 between TMZ (formerly Luangwa Minerals Ltd) and Mwashia Resorces Ltd over licence 27069-HQ-LEL.
The new agreement will result in a new Zambian company Newco, owned 90% by TMZ and 10% by Mwashia, to own and operate the Jacks project.
Mwashia will also transfer the Jacks licence to Newco which will be funded by TMZ and/or Tertiary.
TMZ will hold an option, exercisable at any time, to purchase Mwashia’s 10% interest for US$3.5 million.
Tertiary will make a payment of US$30,000 now to Mwashia under the agreement’s terms.
Tertiary also hold options over four further licences held by Mwashia in Zambia.
The company expects that the new agreement will be a template for those licences should TMZ complete expenditure requirements under the options’ terms.
Executive chairman Patrick Cheetham added that Tertiary had been working closely with Mwashia as its local partner.
“Mwashia has been instrumental in the tribal and stakeholder engagement process that has allowed for the smooth running of our drilling programme at Jacks earlier this year and more recently for the soil sampling programme where we expect to release provisional results shortly.”