Alliance broadens copper footprint
MINOTAUR Exploration has formed a strategic alliance with OZ Minerals that covers the Cloncurry region of north-west Queensland.
The move follows the restructure of the joint venture between the two parties which saw OZ Minerals interest in the Jericho copper-gold discovery rise to 80pc.
OZ recently reached a 70pc stake in the Eloise joint venture by spending $10m and has now agreed to loan-carry minority partner Minotaur to commercial production for the additional 10pc stake.
From April 1, 2019, loan amounts advanced by OZ will be non-recourse and repayable only if positive cash flow emanates from production at Jericho.
The Cloncurry Alliance will be split 70pc OZ Minerals and 30pc Minotaur, and provides for the parties to work exclusively with each other for prospect identification and acquisition around the Cloncurry district.
To initiate the Alliance, OZ Minerals will fund Minotaur’s prospect research and project generation activity to $1m over two years.
Minotaur managing director Andrew Woskett said the Cloncurry region was well recognised as a prolific source of mineral deposits.
“Minotaur has operated exploration programs in the region since 2010 and has acquired valuable geoscientific insights to controls on and types of base metal mineralising systems,” he said.
“The absence of any notable copper discoveries in the past two decades is due primarily to lack of surface exposure of mineralised basement host rocks.
“Minotaur’s recent experience around the Eloise mine shows that exploring under cover can locate previously unknown mineralised systems such as the Jericho copper project.”
Mr Woskett said the Cloncurry Alliance recognised Minotaur’s regional expertise and builds on a healthy working relationship with OZ Minerals nurtured through the Eloise joint venture.
“Minotaur is pleased to have secured OZ Minerals’ financial support, which means Minotaur’s Cloncurry area activity level can be scaled up without distress to shareholder equity and, potentially, for significant shareholder benefits into the future,” he said.