Carnavale Resources (ASX:CAV) is readying to explore for nickel and gold in Western Australia after entering into a joint venture agreement with Barrambie Minerals for its mineral tenement applications E15/1352, E15/1372 and E15/1373.
The three tenements are collectively called the Long Horse project and located southwest of Coolgardie.
Under the agreement, Carnavale will have to spend a minimum of $50,000 on exploration within 12 months from the date of the grant of the mineral tenement application after which it may choose to withdraw.
It will earn an interest of 51% once it spends a total of $250,000 on exploration and can up its interest to 80% once it spends an additional $1 million on exploration.
The company has mineral tenement applications in place for gold permits in Gabon and the process is currently underway.
It is also carrying out a review of its oil and gas assets including possible future royalties from its Lambouka Oil and Gas project located between Italy and Tunisia. The review involved the potential sale of royalties and included whether to increase its exposure to the sector.
It had a cash balance of $1.51 million at the end of March 2013 quarter.
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