Tertiary Minerals plc will control 90% of its Zambia copper projects under a signed new joint venture agreement with its local partner.
STRUCTURE
The deal covers the Jacks, Mukai and Mushima North exploration licences currently 100% held by partner Mwashia Resources Ltd.
The agreement results in a new Zambian company (Newco) of which Tertiary’s 96% owned subsidiary (TMZ) will own 90% and Mwashia will hold 10%.
Tertiary already held the right to a 90% interest in Jacks and options to earn a 90% interest in Mukai and Mushima North through expenditures and payments totalling US$60,000 to Mwashia.
TMZ will carry Mwashia’s 10% interest with carried costs recovered as a priority from future profits.
Tertiary said that the new joint venture relieved it of the expenditure obligations, brought forward the above payment to Mwashia and put ownership of the licences under a common entity controlled by TMZ.
Executive chairman Patrick Cheetham added: “This joint venture agreement is a win-win for Tertiary and Mwashia and a further example of the excellent working relationship we have developed with our local partner which enabled the recent agreement with KoBold Metals on the exciting Konkola West project.
“This new agreement simplifies our corporate structure in Zambia, brings forward our 90% ownership holding in all three of the licences and creates a vehicle by which the partners can better consider joint venture approaches from third parties on the licences.”