PNX Metals Ltd. said May 31 that it signed a binding term sheet to acquire a 90% interest in three exploration licenses, forming the polymetallic Kilfoyle project in Australia's Northern Territory.
The property, located about 80 kilometers west of its Hayes Creek zinc project in the state, is considered to be highly prospective for zinc, lead, silver, lithium, nickel, copper, cobalt and gold mineralization.
To earn the 90% interest in exploration licenses 29731, 28462 and 30521, the miner will pay A$50,000 in cash and incur a A$1.2 million spend over the licenses by May 2021. PNX can opt out of the deal after incurring the minimum annual expenditure commitment.
An unincorporated joint venture will be formed by the two companies after PNX completes the earn-in of the 90% interest, where the vendor will be free carried until reaching a decision to mine. The vendor will then elect to either contribute 10% of the joint venture's activities, or convert its interest to a 2% net smelter returns royalty.
A ground-based fieldwork will begin immediately over the licenses, with a drilling to be conducted over the Fountain Head prospect, to follow up on historic gold mineralization.
