Sandfire Resources NL
(ASX:SFR) has inked a joint venture and farm-in with Ventnor Resources Limited
(ASX:VRX).
Under the deal Sandfire will pay $3 million upfront for an immediate 35 per cent stake in Ventnor’s Thaduna/Green Dragon Project in Western Australia.
Sandfire will also have the option to increase to 80 per cent ownership in two stages through sole funding an extra $6 million on exploration and studies.
The Thaduna/Green Dragon Project is positioned 40 kilometers east of Sandfire’s wholly owned DeGrussa Copper Mine.
Sandfire Managing Director Karl Simich says the deal represents a low-risk option on a potentially attractive future organic growth project.
Ventnor says the deal will fast-track the project to production and remove the need for the company to raise extra funding for mine development.
Shares in Sandfire Resources lost 1.05 per cent on Friday, ending the week at $6.62 while Ventnor last traded at $0.37 before the announcement was released.
Sandfire Resources booked a maiden annual net profit of almost $88 million in the 2013 financial year.
