Independence in $6.5m Alchemy earn-in plan

Perth-based Independence Group will pay up to $6.5 million to earn-in to prospective base metal tenements held by Alchemy Resources in the northern Goldfields.

Independence can earn an interest of up to 80 per cent in four tenements wholly-owned by Alchemy, as well as a 70 per cent interest in a further four tenements co-owned by Alchemy and Jackson Minerals.

The gold producer will pay a minimum of $500,000 on exploration expenditure over a period of 12 months, allowing it to earn an interest in all base metal discoveries with the exception of iron ore.

However Alchemy will retain its 100 per cent interest in prospective gold holdings adjacent to the tenements in the Bryah Basin, north of Meekatharra.

Upon completion of a pre-feasibility study, Independence will have the option of a spending further $5 million to take the project to a definitive feasibility study on a 100 per cent ownership basis.

"Alchemy is very pleased to have attracted a highly regarded base metal exploration partner in Independence Group for our Bryah Basin project," Alchemy chairman Oscar Aamodt said.

"Their detailed knowledge of base metal deposits and access to their proprietary geophysical exploration techniques will be a distinct advantage to successfully explore the Bryah Basin for high value base metal deposits."

The Bryah Basin project currently has indicated resources of 300,000 ounces of gold.

Independence shares were trading 2.5 per cent higher at $3.29 at 11:07am WST.