Mithril and OZ Minerals Limited (ASX: OZL) have entered into a Heads of Agreement to explore seven exploration licences in South Australia's far western Coompana Province for magmatic nickel-copper sulphide deposits.
Mithril will undertake a target generation exercise at Coompana in the first instance, with a view to identifying potential drill targets on the relevant tenements. OZ Minerals will invest $250,000 as part of the stage one targeting.
If Mithril identifies potential drill targets, and the outcome of the exercise is acceptable to both parties, then negotiations would advance to a formal joint venture to undertake exploration on the relevant tenements. Initial drill testing could be conducted by Mithril in the early half of 2017 and Mithril can elect to earn 20% interest by funding $400,000 of a $2M exploration program with the balance funded by OZ Minerals.
If the partnership extends to the drill testing phase, OZ Minerals will assist Mithril Resources to undertake a capital raising in support of the program.
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