Sandfire Resources NL
(ASX:SFR) has entered a Farm-In Agreement with Great Western Exploration Ltd
(ASX:GTE) to explore copper tenements in Western Australia.
Under this deal, Sandfire has the right to earn an initial 70% interest in Great Western’s Yerrida tenements by paying $500,000 in Sandfire shares.
Sandfire would also need to commit to a minimum exploration spend of $1.7 million and sole funding exploration until the delineation of 50,000 tonnes or more of in-ground copper resources.
Great Western sees the Farm-In as a strong endorsement of the Project’s potential and says says this deal will free up its resources and funds. Great Western plans to focus resources on its other copper-cobalt, volcanogenic massive sulphide (VMS) and gold projects.
Yesterday, Sandfire shares closed 1.85% lower at $6.37, and Great Western’s shares dropped 6.25% to 2 cents.
