KEY POINTS:
- Rio Tinto Exploration (RTX) to explore TSC’s northern Rover Project (exploration licence E57/1134) in the central Yilgarn region of WA for non-gold minerals during an initial exclusive 6-month option period
- During the option period, RTX may elect to earn an 80% Joint Venture interest in the non-gold mineral rights on E57/1134 by sole funding A$5M of non-gold exploration
- The Rover Project comprises three exploration licences across a large 460km² tenure package covering two linear Archean greenstones in the central Yilgarn region of WA
- TSC to continue to advance gold exploration with drill target definition work ongoing
Commenting on the agreement with Rio Tinto Exploration, CEO Simon Phillips said:
“We are delighted to be partnering with Rio Tinto Exploration to advance exploration for non-gold minerals within the northern part of our Rover Project in Western Australia, complementing TSC’s existing gold exploration activities. RTX brings to the table a successful exploration track record and deep technical experience that will strongly complement the work completed by TSC’s technical team over recent months. The Yilgarn region is currently undergoing an exploration resurgence and the fact that we have attracted a global miner such as Rio Tinto demonstrates the underlying potential of our tenements. We look forward to providing updates on exploration progress in due course.”
Twenty Seven Co. Limited (ASX: TSC) (“TSC” or “the Company”) is pleased to advise that it has signed a binding term sheet (“Agreement”) with Rio Tinto Exploration Pty Limited (“RTX”), a wholly owned subsidiary of the global mining group Rio Tinto, in relation to the northern Rover Project exploration licence (E57/1134) (“North Rover”) in the central Yilgarn region of Western Australia.
Under the Agreement, RTX will pay TSC A$25,000 up front for an exclusive initial 6 month option to explore North Rover for non-gold minerals. The option period may be extended for a further 6 month period where circumstances beyond the control of RTX result in delays to RTX’s activities. RTX will make a further payment of A$25,000 upon any extension of the option period.
At any time during the option period, RTX may elect to farm-in to North Rover to earn an 80% Joint Venture interest by:
- sole funding exploration expenditure of A$5,000,000 for non-gold minerals; and
- meeting certain minimum commitments, including:
- a minimum of 500m of drilling in the first 2 years of the farm-in; and
- incurring a minimum of A$200,000 of exploration expenditure during each year of the farm-in.
TSC will retain the gold mineral rights in respect of North Rover.
Rover Project Background
TSC’s 100% owned Rover Project is located near Sandstone in a base metals and gold mineral rich area associated with Archean greenstone belts. Rover Project consists of three exploration licenses (E57/1085, E57/1134 and E57/1120) which make up a large 460km² tenure package covering two linear Archean greenstones, with a combined length of around 160km. Historically the area is underexplored and is currently undergoing a resurgence in exploration.
Figure 1: Rover Gold Project location map – showing the North Rover exploration license
