Australian Companies Create Joint-venture Project in Alaska
Sandfire can earn up to 51% of White Rock’s 100% interest in the Red Mountain project by spending A$20 million on exploration over four years, with a minimum of A$6 million to be spent in 2019. Following completion of the exploration spending requirement, Sandfire can elect to increase its interest in the project to 70% by sole-funding a further A$10 million and delivering a prefeasibility study with an ore reserve within a further two years. White Rock can then elect to contribute its percentage share of expenditure to retain its 30% interest.
The Red Mountain project includes a 475-km2 land package covering numerous historic volcanic massive sulphide (VMS) prospects with little modern exploration, providing the companies with a large strategic footprint over a potential new VMS district.
“White Rock welcomes Sandfire as a joint-venture partner that shares White Rock’s vision for the exploration and development of our exciting Red Mountain project,” White Rock Managing Director and CEO Matt Gill said. “Securing a high-quality partner with world-leading expertise in the exploration and development of base metals projects is a strong endorsement to the quality and potential of our globally significant, high-grade VMS Red Mountain project.”