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Sandfire secures 75% farm-in option over Enterprise's Doolgunna gold project

Enterprise Metals Ltd. has entered into an exploration agreement over its Doolgunna project in Western Australia, which allows Sandfire Resources NL to earn up to a 75% interest in the gold property.

Sandfire is required to spend at least A$1.5 million on exploration within two years, and then sole fund the definition of a JORC 2012-compliant mineral resource estimate of 50,000 tonnes of contained copper or copper equivalent resource.

Following the farm-in, the companies will enter into a joint venture on the 975-square-kilometer project, with Sandfire holding 75% and Enterprise retaining the remaining stake, according to the Oct. 12 statement.

Sandfire will also issue A$300,000 worth of shares to Enterprise as part of the transaction.