ABM Resources NL said Oct. 16 that it signed an agreement with Thunderbird Metals Pty Ltd. for the latter to earn up to a 70% joint venture interest in the former's North Arunta gold project in Australia's Northern Territory.

To earn an initial 51%, Thunderbird must spend A$2.5 million over a period of 2.5 years, with a minimum spend of A$500,000 in the first two years. It may withdraw from the earn-in period after completing A$500,000 in exploration work.

In addition, ABM will be issued shares equivalent to 5% of Thunderbird, should it become a public listed company.

Upon earning 51%, Thunderbird has the option to earn an additional 19% interest and commence a joint venture by completing a A$4 million spend on the North Arunta project within two years. At this point, ABM retains a free-carried interest to the completion of a bankable feasibility study. Upon the completion of the study, it may elect to convert its 30% interest into a 1.5% net profit royalty or contribute to the funding of future exploration and development.