Sandfire Resources NL
(ASX:SFR) has entered an exploration agreement in relation to the Doolgunna Project in the mid-west region of Western Australia.
The agreement is with Enterprise Metals
(ASX:ENT), who will receive $300,000 worth of Sandfire shares when the contract commences.
Sandfire will also need to spend a minimum of $1.5 million over 2 years on exploration.
Another term of the contract is that Sandfire will earn 75% interest once the minimum Mineral Resource has been defined. Afterwards, both companies will form a joint venture to fund their respective interests.
Sandfire Resources reported a net profit of $46.4 million at 30 June 2016.
