Red Metal Ltd. executed an option and joint venture agreement with MMG Ltd. subsidiary MMG Exploration Pty. Ltd. over Red Metal's Mallapunyah zinc project in Australia's Northern Territory.
Under the deal terms, MMG will finalize land access negotiations toward grant of the tenement, following which it will have the right to earn a 70% interest in the project by completing a bankable feasibility study within seven years.
Red Metal will be free carried to a decision to mine, according to a Dec. 4 release.
During the option period, MMG can vest a 60% interest in the project by spending A$4 million within the first five years from grant of the tenement and electing to advance the project towards feasibility.
MMG has also committed to a minimum exploration expenditure of A$250,000 per annum during the period.
