Jindalee Resources Ltd. signed an agreement enabling unlisted explorer Aldoro Resources Ltd. to earn an 80% interest in the nongold rights of its North Sinclair and Camel Bore projects in Western Australia.
Aside from gold, the two projects are considered prospective for nickel-cobalt mineralization and may also host platinum group metals, according to the May 10 release.
The transaction is subject to Aldoro raising at least A$4.5 million and listing on the ASX by Oct. 2, as well as the usual approvals. The agreement, however, will be terminated if it is not settled by Nov. 7.
Aldoro can secure an 80% interest in the rights by paying A$50,000 in cash, issuing 900,000 shares at 20 cents apiece, and spending at least A$500,000 on exploration within two years.
In addition, a milestone payment will come due upon the definition of nongold resources, comprising the greater of either 1,250,000 shares or A$500,000 worth of shares.
Jindalee's 20% interest in the rights will be free carried to a decision to mine, after which the company can contribute on a pro rata basis or dilute its stake. If its interest decreases to less than 5%, the interest will revert to a 2% gross royalty.
According to Jindalee, the deal is part of an ongoing program to divest noncore projects and follows the sale of its Millrose project in March to Alloy Resources Ltd.