South32 en­ters US al­liance

The Australian Mining Review - - NEWS: INTERNATIONAL - EMMA DAVIES US

SOUTH32 has ex­e­cuted a Re­gional Strate­gic Al­liance Agree­ment with EMX Roy­alty Cor­po­ra­tion cov­er­ing ex­plo­ration ten­e­ments in Ari­zona, New Mex­ico, and Utah.

Un­der the agree­ment, South32 agreed to pro­vide $800,000 per year over two years to cover gen­er­a­tive work and the salaries of EMX per­son­nel in­volved in the ex­plo­ration of cop­per and other base metal projects within the Laramide and Ter­tiary mag­matic arcs — ex­clud­ing South32’s Her­mosa pro­ject in south­ern Ari­zona.

South32 would also pro­vide a sep­a­rate an­nual ac­qui­si­tion fund of $200,000 to pay for the ac­qui­si­tion of new prop­er­ties as ap­proved by the tech­ni­cal com­mit­tee, with ex­plo­ration work to be funded separately through cash calls to South32.

Any projects ad­vanced to the des­ig­nated pro­ject stage would be cov­ered un­der sep­a­rate op­tion agree­ments with each agree­ment pro­vid­ing that South32 can earn a 100 per cent in­ter­est in the pro­ject by re­im­burs­ing EMX’s hold­ing costs upon ex­e­cu­tion of the op­tion agree­ment.

Dur­ing the five-year term of an op­tion agree­ment, South32 would also make op­tion pay­ments to­talling $525,000 and com­plet­ing $5 mil­lion in ex­plo­ration ex­pen­di­tures to EMX.

Five EMX cop­per projects in Ari­zona had been se­lected to be­gin ad­vanc­ing to­ward the drill pro­gram stage; Mid­night Ju­niper, 1km north­west of the Morenci open pit cop­per mine; Jasper Canyon and Sleep­ing Beauty in the Globe-Mi­ami min­ing district; Dragons Tail in the Su­pe­rior min­ing district; and Lomi­tas Ne­gras, about 10km south­east of the town of San Manuel.

Im­age:South32.

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