Australia-based mining company Fox Resources has entered into a definitive farm-in and joint venture agreement with Pilbara Minerals to explore tenements in West Pilbara region of Western Australia.
The joint venture is to develop 10 of total 14 exploration tenements in the West Pilbara area.
As per the terms of the agreement, Fox Resources will acquire up to 80% stake in the tenements, in return for carrying out extensive exploration program.
Out of the total entitled stake, Fox will initially acquire 40% interest by paying $150,000 to Pilbara Minerals and the remaining stake will be acquired in three stages.
During this three-year period Fox will make yearly payments of $565,000 during first two years to earn an additional 15% interest each time and $839,000 in the third for final 10% interest.
Fox Resources CEO Bruce Garlick stated that the joint venture is aimed at developing anomalies identified on the PLS tenements, and also to identify new anomalies that would provide new additional drill targets.
"A significant VTEM program is being prepared which will cover new areas of the PLS tenements that have not been subject to VTEM previously.
"This represents a great opportunity for Fox and PLS to develop these assets, which are close to Fox’s other projects and current landholding in the Pilbara," elaborated Garlick.
However, the project is subject to initial exploration work program besides obtaining necessary regulatory and governmental approvals.