LeadFX's Rosslyn signs MOU for Paroo mine farm-in, JV
2016-12-19 09:38 ET - News Release
Mr. Rob Scargill reports
LEADFX ANNOUNCES MEMORANDUM OF UNDERSTANDING COVERING COBALT EXPLORATION
LeadFX Inc. today commented on a proposed farm-in and joint venture arrangement recently announced by Riva Resources Ltd. (formerly, Dragon Energy Pty. Ltd.) relating to the exploration of cobalt, gold and copper on the company's mining tenements that cover its Paroo Station mine in Western Australia.
The company's wholly owned subsidiary, Rosslyn Hill Mining Pty. Ltd., has entered into a non-binding memorandum of understanding (MOU) with Riva relating to a farm-in and joint venture that would grant Riva the right to explore for cobalt, copper and gold on the company's mining leases and exploration licences at the Paroo Station mine. Riva is a mining exploration company that holds pending exploration licences on mining tenements adjacent to the Paroo Station mine. Under the terms of the MOU, Riva may earn up to a 75-per-cent interest in any prospective cobalt, gold and/or copper mineral rights discovered on RHM's mining tenements by incurring exploration expenditures totalling $6-million (Australian) over a four-year period. Riva would also grant the company reciprocal rights to explore for lead, zinc and silver minerals on Riva's neighbouring mining tenements on similar terms. Under the proposed terms, if Riva fails to meet required expenditures in the time required, it would forfeit all interest earned in the mineral rights. The parties anticipate a minimum exploration spend of $500,000 (Australian) by Riva on RHM's tenements during the first year of the farm-in period. Upon reaching a 75-per-cent interest in the mineral rights, Riva and RHM would enter into a formal joint venture agreement with respect to the mineral rights. LeadFX would maintain the exclusive right to mine lead at the Paroo Station mine.
LeadFX's chief executive officer, Rob Scargill, stated: "This MOU opens up a new cobalt exploration opportunity in the short term, whilst we focus on our plans to restart the Paroo Station mine, and, longer term, gives LeadFX a larger potential target area for future lead-zinc discoveries adjacent to our existing operations."
The commencement of the farm-in arrangement with Riva remains subject to the negotiation of definitive documentation by the parties, and the approval of the terms by LeadFX's board of directors and secured lender.
About Riva Resources
Riva Resources is an Australian Stock Exchange-listed exploration company controlling a portfolio of tenements in Western Australia. Riva presently holds three mineral projects that comprise nine tenements, and have exploration targets encompassing cobalt, gold, iron ore and base metals. In September, 2016, Riva announced that it had entered into an agreement to acquire the Tabac cobalt-gold project. The Tabac project consists of two exploration licence applications covering a combined area of 111.5 square kilometres. The Tabac project is located on the Goldfields Highway, 30 kilometres west of Wiluna, in the Northern Goldfields region of Western Australia, and sits adjacent to the Paroo Station mine.
LeadFX is a Canadian-based mining company focused on the development of lead-silver projects located in stable jurisdictions. The company's current portfolio includes a restart-ready lead operation in Western Australia and a development project in Utah, United States.SVI
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