Base and precious metal development company, Terramin Australia Limited (Terramin), has entered into an earn-in agreement (Agreement) with Freeport-McMoRan Exploration Australia Pty Ltd. (Freeport) for the exploration of the Wild Horse tenement which covers approximately 462 square kilometres and is located 15 kilometres east of Murray Bridge, South Australia.
According to Terramin, the exploration activities will primarily target the distinct Wild Horse aerial magnetic anomaly which is positioned 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 and is a magnetic core surrounded by a demagnetised peripheral zone.
The magnetic body is 1300 metres by 2000 metres and has been modelled from approximately 100 metres to a depth of 1400 metres.
Terramin’s CEO, Richard Taylor, said that the Wild Horse prospect has been one they 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,” Mr Taylor commented.
“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 per cent interest in the project if it spends A$3 million on exploration over four years;
- Freeport may elect to earn an additional 24 per cent interest in the project (total 75 per cent) 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 per cent, this will convert to a 1 per cent NSR royalty.