Gryphon Minerals has in early 2007 initiated a Joint Venture agreement with major nickel producer Minara Resources Ltd (Minara) to primarily explore for sulphide nickel mineralisation on Gryphon Minerals Collurabbie and Mount Rankin Projects, located in two highly prospective nickel regions of Western Australia.
The JV has already had significant exploration success within the first few months having identified numerous geophysical electro-magnetic and geochemical targets at both the Collurabbie and Mt Rankin Projects.
Minara Resources Limited is a leading Australian resources company, based in Perth and listed on the Australian Stock Exchange (ASX Code: MRE). The Company is Western Australia’s second largest nickel producer, and one of the top ten in the world. Founded in 1994, Minara Resources (formerly Anaconda Nickel Limited) owns and operates the world-class Murrin Murrin nickel cobalt joint venture project (60% Minara, 40% Glencore International AG) near Leonora in Western Australia's historic northern goldfields region.
The terms of the Farm In and Joint Venture are as follows:
- Minara to fund $5,500,000 in exploration over 4 years to earn 70% equity in nickel and base metal minerals and 60% on all other commodities for both the Collurabbie and Mt Rankin Projects. The $5,500,000 can be used to fund exploration on either Project area.
- Minara to fund $1,500,000 within the first 12 months before they can withdraw from the joint venture and can then elect to continue in year two by funding a further $750,000, and again at their election to continue in the third year by funding at least a further $500,000 on exploration.
- No equity in the project is earned by Minara until the $5,500,000 exploration funding has been spent.
- Gryphon Minerals is the manager and operator of the project until a decision to mine has been made.
- Minara will reimburse Gryphon Minerals a further $600,000 for previous expenditure.
Gryphon Minerals believes the farm in and joint venture agreement provides the Collurabbie and Mount Rankin Projects with significant funding to advance any potential mineral discoveries.
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