Sandfire Resources NL has secured a right to earn interest in the Morck's Well East and Doolgunna copper projects in Western Australia.
The Doolgunna project is wholly owned by Auris Minerals Ltd., and the Morck's Well East is a joint venture between Auris and Fe Ltd. on a 80/20 basis, respectively.
Sandfire is required to initially pay at least A$1.2 million to Auris and A$300,000 to Fe, and spend A$2.0 million for exploration on the tenements within two years.
Following minimum spend, the company will sole fund exploration to a discovery of at least 50,000 tonnes of contained copper.
The company can then complete a feasibility study on the projects to earn a 70% interest, according to the Feb. 27 release.
In case of Doolgunna, the company will own a 70% stake with 30% held by Auris, while for Morck's Well East the interests will be held 70% by Sandfire, 24% by Auris and 6% by Fe.
Following formation of the joint venture, Auris can choose to contribute, elect Sandfire to fund it to commercial production — giving Sandfire a 75% interest, or sell its interest to Sandfire.
Fe has agreed to give up its right to be free carried on the Morck's Well East tenements.
