South32 enters US alliance
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.