15/06/2010 - 11:45

Ivernia signs JV with Prairie Downs

15/06/2010 - 11:45

Bookmark

Save articles for future reference.

Canadian company Ivernia has finalised an agreement with Perth-based Prairie Downs to acquire up to 80 per cent of the Prairie Downs lead zinc project in WA.

Ivernia signs JV with Prairie Downs

Canadian company Ivernia has finalised an agreement with Perth-based Prairie Downs to acquire up to 80 per cent of the Prairie Downs lead zinc project in WA.

Under the joint venture Ivernia has committed to an accelerated initial $2 million exploration program of infill sampling and drilling.

Previous drilling at Prairie Downs has concentrated only on the known resource with limited work on other deposits in the belt or on associated mineralisation.

In a statement Ivernia said this will take place within 12 months and will test a number of geological, geochemical and geophysical targets in the vicinity of the known deposits at Prairie Downs.

Ivernia's vice president of exploration and corporate development, Bruce Hopper, said, "Signing this Joint Venture arrangement is an exciting opportunity for Ivernia to discover a significant base metal deposit in Western Australia and pursue a base metals growth strategy that extends our footprint in a region that is already home to our successful Magellan lead mining operation."

One of the key features of the joint venture is an option in favour of Ivernia to purchase a 60 per cent interest in the Prairie Downs Base Metal Project for $10 million in cash or shares. This is exercisable by Ivernia after its spent $3 million in 10 months or $5 million within 3 years.

Ivernia has the ability to increase its 60 per cent interest to 80 per cent by spending a further $5 million on exploration within 2 years of earning the initial 60 per cent interest.

 

 

STANDING BY BUSINESS. TRUSTED BY BUSINESS.

Subscription Options