The remaining 15% interest in the project will be held by Ora Gold until a decision to mine is taken
Australian mining company Sandfire Resources has reached agreement to acquire about 85% joint venture stake in the Red Bore copper project in Western Australia.
The project is located in the Doolgunna Region of the Murchison mineral field approximately 900km north-northeast of Perth in Western Australia.
The Red Bore project includes a 2km2 granted mining licence, ML52/597, located adjacent to Sandfire’s DeGrussa Copper-Gold Mine in Western Australia.
Sandfire said that the tenement was subject to a joint venture between Ora Gold, which holds 90% interest and William Richmond who owns 10% interest in the project.
For the deal, Sandfire will make a cash payment of $1.25m to Richmond and provide a 1.25% net smelter royalty over minerals produced from the Red Bore project.
Sandfire Resources managing director Karl Simich said that “the agreements entered into with Ora Gold and Mr Richmond consolidate ownership of this strategically located tenement adjacent to the DeGrussa Copper-Gold Mine.
“The Red Bore Project will be incorporated within our near-mine exploration programs at DeGrussa and explored using our leading geochemical and geophysical exploration methodologies.”
Ora Gold to own remaining 15% stake in Red Bore project
The remaining 15% interest in the project will be held by Ora Gold until a decision to mine is taken.
If Ora Gold decides to retain its interest, Sandfire will have to cover Ora Gold’s share of any cash call through interest free loans repayable from 75% of free cash flow from its share of any minerals produced from Red Bore.
The feasibility study was conducted for the mineral reserves located on the Johnny Lee copper deposit, the cornerstone deposit at the Black Butte copper project.