Perth-based Mineral Sands Ltd can earn up to an 80 per cent stake in the western Victorian mineral sands interests held by Beaconsfield Gold NL under a farm-in agreement signed today.
Mineral Sands Limited can earn 51 per cent of the mineral sands rights by spending $100,000 in two years and can then earn 75 per cent and 80 per cent by further expenditures of $100,000 and $50,000, respectively.
The full text of a company announcement is pasted below
Mineral Sands Limited can earn 51% of the mineral sands rights by expenditure of $100,000 in two years and can then earn 75% and 80% by further expenditures of $100,000 and $50,000, respectively.
Beaconsfield may contribute as a 20% partner, or convert their interest to a 2% royalty on mineral sand production.
Mineral Sands Ltd (ASX: MSN), and Beaconsfield Gold NL (ASX:BCD) are pleased to announce a farm-in agreement over Exploration Licence 4932, in the northern Otway Basin region of western Victoria, one of the tenements in Beaconsfield Gold's Stavely gold exploration project.
The Farm-In Agreement allows Mineral Sands Ltd to earn 51% of the mineral sands interests of the above exploration licence by carrying out exploration expenditure of $100,000 within two years, with a minimum commitment of $48,300. Mineral Sands Ltd can earn a 75%, and then an 80% interest by further expenditures of $100,000 and $50,000 respectively. Upon Mineral Sands earning an 80% interest, Beaconsfield can either elect to contribute as a 20% partner in a joint venture, or convert to a 2% royalty on revenue from mineral sand production.
Beaconsfield retains a 100% interest in all mineral rights on the tenement other than mineral sands.
Mineral Sands Ltd Executive Director Mark Teakle comments, "The agreement covers an area where we believe a strandplain is preserved in Tertiary sediments covering the gold-prospective Cambrian basement. We also believe these sands are similar to the heavy mineral-bearing sands in the Murray Basin to the north. We intend to test the heavy mineral potential of the farm-in area with a drilling program. This program will also assist Beaconsfield as our reconnaissance drilling will aim to also intersect basement rocks."
Beaconsfield Gold NL Chief Executive Officer, Bill Colvin, welcomed the agreement, saying "The prospectivity of this tenement is significantly enhanced with the farm-in of an experienced mineral sands explorer, whilst allowing Beaconsfield to remain focussed on its 100% owned gold and base metals programmes in the Stavely project."