Independence Group
(ASX:IGO) and Sheffield Resources
(ASX:SFX) have formed a joint venture (JV) to explore Sheffield’s Fraser Range tenements in Western Australia -- which includes four granted tenements, plus one tenement application.
One key term of the JV is that Independence Group will earn a 51% interest in the project by making an upfront cash payment of $500,000.
Also, Independence Group can earn an additional 19% stake by spending $5 million within 5 years of commencing the JV.
The company also has the option to buy an additional 5% stake for $10 million -- after the JV begins and up until the Pre-feasibility study is complete.
Independence Group reported a net loss of $58.8 million at 30 June 2016.
