Cazaly in $2m Northern Territory JV

A wholly owned subsidiary of Cazaly Resources Ltd has entered into a $2 million joint venture with a South Australian firm to explore tenements in the Northern Territory.

Sammy Resources Pty Ltd has signed a heads of agreement with Mithril Resources Ltd to explore grounds located near the latter's existing projects, and are prospective for copper and nickel.

Under the deal, Mithril can earn up to 80 per cent into two exploration licences owned by Sammy by spending $2 million within five years.

Following on from that, an unincorporated joint venture will be formed and both companies must contribute pro-rata or dilute its interest.

If the interest is diluted to less than 10 per cent, it will revert to a 1.5 per cent net smelter royalty.

Should Mithril acquire the 80 per cent interest, it will have the right to purchase and or market Sammy's share of minerals on normal commercial terms.