Tertiary Minerals plc has signed a “detailed, largely non-binding” term sheet for an earn-in and joint venture deal with a “well resourced” third party for the Konkola West copper project in Zambia.
APPROVALS
The project comprises exploration licence 27067-HQ-LEL, which covers 71.9km2 and lies 18km northwest of Chingola in the Central African copper belt.
Tertiary is currently in the initial stages of earning up to a 90% interest in Konkola West from local partner Mwashia Resources Ltd.
The agreement with the “mineral exploration and mining company” and term sheet are subject to conditions precedent relating to government approvals.
TERMS
In stage I of the earn-in, the third party will commit to complete a specified drill programme within 14 months of signing the agreement to earn in an initial 51% interest in the licence, leaving 39% for Tertiary and 10% with Mwashia.
The option to earn 70% in stage II (Tertiary 20% and Mwashia 10%), involves sole funding a cumulative US$6 million on exploration within 48 months of signing the agreement.
Executive chairman Patrick Cheetham said that the term sheet re-aligned the company’s existing agreement with Mwashia.
“The prize at Konkola West is the potential deep down-dip extension of one of the world’s great copper deposits which is being mined on mining leases adjoining Konkola West at the Konkola and Lubambe copper mines.
“It is envisaged that the stage I drill holes will extend beyond 1km depth.”
The company hopes to sign a binding agreement “as soon as possible” with the third party and Mwashia.