MELBOURNE, AUSTRALIA: OZ Minerals (ASX: OZL) would sell its Jericho and Eloise Joint Venture interests (80 per cent and 70 per cent respectively) to Demetallica, a subsidiary of partner Minotaur Exploration (ASX: MEP), for consideration of A$6.6 million.
The sale also includes a deferred contingent consideration of up to US$8.82 million, calculated at the rate of US$0.04 per pound of payable copper above 200kt contained copper and a further A$2.75 million upon completion of a pre-feasibility study.
OZ Minerals has copper focused exploration joint ventures with MEP in the Cloncurry region of Queensland and Gawler Craton region of South Australia. The Jericho project (OZL 80%; MEP 20%) and Eloise project (OZL 70%; MEP 30%) are the subject of today’s announcement.
A maiden Mineral Resource estimate of the Jericho copper-gold system of 9.1Mt @ 1.4% Cu and 0.3g/t Au1 was announced in July 2020.
OZ Minerals Managing Director and Chief Executive Officer, Andrew Cole, said: “Ground EM proved to be effective in the search for buried, non-magnetic but conductive minerals systems Minotaur and OZ Minerals discovered copper and gold mineralisation at the Jericho prospect late in 2017.
Subsequent drilling during 2018-2019 led to a Maiden Resource being released to the market in mid-2020.
“Whilst a discovery, the resource at Jericho did not meet our requirements to continue so we have agreed for our partner’s subsidiary, Demetallica, to gain 100% ownership of the project”.