Encounter Resources Ltd.'s shares rose by more than 47% on Nov. 12 after it secured Independence Group NL as a major shareholder and partner for the development of the Yeneena copper-cobalt project in Western Australia.
Independence Group subscribed in a placement of 24 million Encounter shares at 7.5 Australian cents apiece, raising a total of A$1.8 million. At least 80% of this amount will go toward advancing the project.
Independence Group may also opt to acquire a 70% stake in Yeneena by incurring A$15 million in costs over a seven-year period. Once the earn-in is completed, a 70/30 joint venture will be formed and the parties must contribute funds based on their respective interests, or face dilution.
The agreement covers 1,250 square kilometers of tenure and includes the BM1 to BM7 copper-cobalt trend, the Lookout Rocks copper-cobalt prospect and the Aria iron oxide-copper-gold style target.
