Caravel Minerals Ltd. said June 7 that First Quantum Minerals Ltd. will withdraw from the farm-in agreement over the Calingiri copper project in Western Australia.

As a result, Caravel will regain 100% interest in the Calingiri project. First Quantum will, however, retain an 8.8% shareholding in the company.

First Quantum's withdrawal from the Calingiri joint venture is consistent with the company's policy of seeking to cut costs, which includes reducing its CapEx programs and focusing on its large copper projects already under development, Caravel CEO Marcel Hilmer said.

Under the 2015 deal, First Quantum secured an option to earn an initial 50.1% interest in the Calingiri project.

Caravel will seek a new joint venture partner to assist with the continued development of Calingiri.