Buxton Resources Ltd. entered into additional joint venture agreements with Independence Group NL for Buxton's Merlin and NWC nickel-copper projects in Western Australia and will vest all of its remaining West Kimberley nickel-copper tenure into the previously agreed joint venture.
The company said Oct. 2 that it agreed to sell a 51% interest in the Merlin project to Independence unit Independence Newsearch Pty. Ltd. and enter into a joint venture.
"These binding deals mean that exploration will be accelerated still further, while also freeing Buxton from any ongoing financial or management commitments," Buxton Managing Director Eamon Hannon said.
Independence Newsearch will have the right to fund A$5.0 million of expenditures over four years to take its interest to 80%, while Buxton will be free carried until a feasibility study.
The deal will replace a previous option that Buxton unit Alexander Creek Pty. Ltd. granted Independence Newsearch in November 2018. As a result, Buxton will not be required to spend about A$3 million on the Merlin tenements.
Buxton also agreed to sell an 80% interest in its NWC project tenements and 100% of operational field equipment to Independence Newsearch for staged payments totaling about A$2.8 million.
The deal is conditional on Buxton becoming the registered holder of a 100% interest in the Fissure tenement and an 80% interest in the Quick Shears tenements at NWC.
Upon completion, a joint venture will be formed on the Fissure tenement, which will later be brought under the West Kimberley regional project agreement.
Independence Newsearch will also become a party to the existing joint venture between Buxton and Timothy Tatterson over the Quick Shears tenements.
