Iron ore miner Oz Minerals Ltd
(ASX:OZL) and IMX Resources Ltd
(ASX:IXR) have signed an agreement to form a joint venture to explore for, and facilitate the development of, copper-gold projects on IMX’s Mt Woods tenements in South Australia.
Oz says it has an immediate 51% interest in the joint venture which will be maintained provided the miner spends a minimum $4 million a year over the next five years for a total $20 million.
If the miner fails to make these payments it will forfeit its entire 51% joint venture interest.
If IMX does not contribute, Oz Minerals shall solely fund exploration expenditure and can earn up to a maximum of 75% interest in the joint venture, with IMX progressively diluting.
Oz managing director and CEO Terry Burgess says the company is very excited about having signed this agreement and says it considers these tenements very important in its strategy of maximising value from its existing assets.
Mr Burgess says the likelihood of an economic discovery within the IMX tenements is greatly improved due to the proximity to Oz’s Prominent Hill mine and supporting infrastructure.
An exploration program is expected to commence immediately.
Oz Minerals posted a $517.3 million loss for the 2009 calendar year.
