Encounter Resources has signed a $20 millon farm-in agreement with global copper miner Antofagasta Minerals for its Yeneena project near Telfer.
The Perth-based explorer said the agreement related to two of its tenements in the Paterson province of the state, covering 433 square kilometres of land.
Under the agreement, Chile-headquartered Antofagasta can earn a 51 per cent stake in the project by spending $US20 million on exploration over the next five years.
Antofagasta will also invest $US2 million in Encounter through a private placement, priced at 21 cents per share.
“We are delighted to welcome Antofagasta onto our share register and into an earn-in agreement over two tenements within the Yeneena project,” Encounter managing director Will Robinson said.
“The transaction is a significant endorsement of the large-scale copper potential at Yeneena.”
The total Yeneena project covers 1,400 square kilometres in the Paterson province and is located around 40km south east of the Nifty copper mine.
At 1:45PM, WST, Encounter’s stock was up 4.5 cents, trading at 20 cents.