FRASER Range explorer Rumble Resources Ltd (ASX: RTR) has formed a joint venture with leading base metal and gold miner Independence Group NL (ASX: IGO) to explore and earn an interest in its highly prospective projects in the south of WA.
Under the terms of the Agreement between Rumble and Independence Newsearch Pty Ltd (a wholly owned subsidiary of Independence Group NL), IGO has been granted the right to earn 70% equity in Rumble’s 100%-owned Fraser Range Project by spending $1.5million on exploration over three years.
Rumble told its shareholders that the agreement will see an acceleration of exploration at the Fraser Range Project and it will benefit from IGO’s extensive expertise in the region where it has developed and operated the world-class Nova.
Key Commercial Terms of the Earn In Agreement
- IGO to expend A$1.5 million on exploration over a period of three years from the execution of the agreement to earn a 70% interest in the Fraser Range Projects
- IGO to expend a minimum of $300,000 before it can withdraw from the earn in agreement
- IGO to pay Rumble $85,000 within 14 days of signing agreement as reimbursement of expenditure incurred by Rumble
- Rumble is free carried to completion of a pre-feasibility study
- Following the completion of a pre-feasibility study, Rumble can either elect to contribute to ongoing project development or dilute to a 1% net smelter royalty.
In connection with the signing of the joint venture with IGO, Rumble also signed an agreement with the original vendors of the Big Red Project (which forms part of the broader Fraser Range Project) to annul any future success payments for either $20,000 in cash or $20,000 in Rumble shares.