Global mining company, South32
(ASX:S32), has entered into a strategic alliance agreement with small-cap explorer, Ausquest Ltd
(ASX:AQD).
The agreement is for the purpose of developing a pipeline of high-potential copper, zinc and nickel exploration opportunities in Australia, Peru and globally.
Under this deal, Ausquest is entitled to receive an initial payment of US$250,000 (and up to a maximum of US$500,000) to advance the projects to a drill-ready stage.
Once that stage occurs, South32 can earn a 70% stake in each project for expenditure of US$4 million.
Ausquest is also expecting to see a minimum cash injection of US$1.5 million to advance the projects which South32 has identified as being of interest.
Last week, South32 posted some impressive 1H FY17 results – including a US$620 million statutory net profit, and its underlying earnings skyrocketing 1,742% to $470 million.
