Terramin in Wild Horse Earn-In Agreement with Freeport-McMoRan Exploration Australia
5 Jun 2019
Terramin Australia in Wild Horse Earn-in Agreement
with Freeport-McMoRan Exploration Australia
· Earn-in Agreement signed with Freeport-McMoRan Exploration Australia Pty Ltd. (Freeport) targeting possible copper-gold deposits in the Murray Bridge area of South Australia
· Freeport may fund accelerated work program and brings exploration capabilities
· Terramin to retain 25% or dilute to 1% NSR royalty
Terramin Australia Limited (ASX:TZN) (Terramin) is pleased to announce that it has entered into an earn-in agreement with Freeport for exploration of the Wild Horse tenement which covers approximately 462 square kilometres and is located 15 kilometres east of Murray Bridge.
Exploration will primarily target the distinct Wild Horse aerial magnetic anomaly located on the western edge of a magnetic granite pluton. The Wild Horse anomaly exhibits the classic Western Pacific porphyry deposit style of ringed magnetic zonation (Figure 1), a magnetic core surrounded by a demagnetized peripheral zone. The magnetic body is 1300m by 2000m and has been modelled from approximately 100m to a depth of 1400m.
Commenting on the Agreement, Terramin’s CEO Richard Taylor, said:
“The Wild Horse prospect has been one we have been excited about for some time. The size of the anomaly has meant that working with a party such as Freeport to explore the tenement has been a priority in the past year. We are especially pleased to be working with Freeport and believe it is significant to South Australia that another major copper producer has become active in the state.”
The key terms of the Agreement are:
· Freeport may earn a 51% interest in the project if it spends A$3 million on exploration over four years;
· Freeport may elect to earn an additional 24% interest in the project (total 75%) by spending a further A$20 million over six years, after which the parties can proportionally contribute or dilute; and
· If Terramin’s interest dilutes to below 10%, this converts to a 1% NSR royalty.
Freeport’s parent company, Freeport-McMoRan Inc. (NYSE: FCX) is a leading international mining company. FCX operates large, long-lived, geographically diverse assets with significant proven and probable reserves of copper, gold and molybdenum.
For further information, please contact:
Chief Executive Officer
Terramin Australia Limited
+61 8 8213 1415
Media EnquiriesMike O’Reilly
Media and Government Consulting
+61 414 882 505