Sandfire buys into DeGrussa neighbour

Sandfire Resources will spend $3 million to earn a majority stake in Thundelarra’s Red Bore project, which lies adjacent to the copper miner’s DeGrussa operation in the Bryah Basin.

Perth-based Sandfire said it would issue $1.5 million worth of its shares to Thundelarra and spend at least $1.5 million in exploration over 18 months, plus meet mineral resource definition targets, to earn a 75 per cent stake in the Red Bore copper prospect.

Once Sandfire has earned the majority stake, a joint venture will be formed with Thundelarra owning 15 per cent of the project and existing stakeholder William Richmond retaining his 10 per cent share.

Thundelarra chairman Phil Crabb said the deal allowed the company to focus its efforts and cash on continued exploration at its Garden Gully gold discovery while at the same time maintaining exposure to Red Bore without incurring any expenses.

“We remain convinced that Red Bore has hidden riches yet to be uncovered, and Sandfire is the logical party to accelerate exploration there as they have a unique understanding of the local geology and pathfinders, based on their own development at DeGrussa,” Mr Crabb said.

“Their Conductor 5 orebody, at 600 metres or so below surface, lies less than 200 metres from the north-west corner of Red Bore, so their approach to Thundelarra is timely for everyone.

“This could be the key to unlocking Red Bore and delivering value to our longstanding and loyal shareholders.”

Sandfire shares were 0.3 per cent higher to $5.74 each at 1pm, while Thundelarra shares surged 17.7 per cent to 5.3 cents each.