North Queensland Resources Pty Ltd (NQR) has entered into a Strategic Alliance Agreement with diversified global miner South32 (ASX, LSE, JSE: S32; ADR: SOUHY) to appraise a number of exploration opportunities with significant potential across an area of 200km by 500km in North Queensland. The area comprises 27 tenements (granted and under application), with 22 wholly-owned by NQR and five subject to farm-in.
NQR has assembled a regional-scale package of tenements and has defined at least 50 exploration targets across an area it has identified as prospective for Tier 1 mineral deposits. The prospective area is concealed under 20 to 200 metres of cover and historically has had minimal exploration.
Under the terms of the Alliance, South32 is to fund a minimum of $10 million in exploration over four years with NQR as manager. The agreed work program for 2018 is to drill 30 holes to test the highest priority targets.
NQR is a joint initiative of boutique Melbourne private equity group, RVF Investments (RVF) and exploration prospect generator, Romardo Group. RVF brings an uncommon combination of world-class exploration expertise and major resources deal making, coupled with patient risk capital. Romardo Group brings an impressive track record in the discovery of major mineral deposits.
“This is an exciting development for us”, said Mike Oppenheimer, Chairman of RVF. “We are delighted to partner with South32 and this deal provides validation of our business strategy. In the downturn of the minerals market, we partnered with a highly experienced exploration team with an impressive discovery track record in the region, including the Cannington Deposit. We subsequently built our extensive tenement position that now underpins this world class exploration area. We believe that the commodity cycle remains favourable for businesses driven by our skills and capital strategy and are progressing a range of value creative opportunities globally."
Mark Dugmore, Romardo Group Exploration Director commented, “Having identified the opportunity, access to RVF’s risk capital and business structuring capability allowed us to deploy our core exploration expertise aggressively to secure our attractive tenement position.”
South32 can nominate a project area at any time, which would then become a 50/50 joint development venture under South32 management. South32 can elect to fund to the point of commitment to a pre-feasibility study, at which time the project becomes a 70/30 joint venture. South32 is obligated to make milestone payments to NQR associated with this work program.
NQR and RVF contact:
Managing Director, North Queensland Resources and
Chief Executive Officer, RVF Investments
Phone 0438 722 443