Chinalco YunnanCopper Resources Ltd. and ElementosLtd. terminated their Millennium joint venture as part of the sale ofElement Minerals Australia Pty. Ltd.to Hammer Metals Ltd.,the companies said in separate May 4 statements.
Element Minerals holds the five mining leases that form the Millenniumjoint venture in Queensland, Australia. Historical drilling in the area intersectedup to 19 meters at 1.27% copper, 0.38% cobalt and 0.7 g/t of gold including 6 metersat 3.45% copper, 0.32% cobalt and 2.0 g/t of gold.
In September 2013, Elementos entered into a with Chinalco Yunnanto develop Millennium, in which Chinalco can earn up to 70% in the project. Chinalcostill had some A$400,000 in exploration spending by September to earn an initial51% interest in the leases.
In exchange for the Millennium mining leases, Hammer will issue500,000 of its shares to Chinalco Yunnan and pay A$57,950, including the replacementof an environmental bond, to Elementos.
Elementos CEO Tim McManus believes the sale as "releasingvalue from noncore assets" and stressed that the company's focus remains onthe staged developmentof the Clevelandtin-copper-tungsten project in northwest Tasmania.