Metallica Minerals (ASX:MLM) has entered into a royalty agreement with a privately owned company over its Dingo Dam Mining Lease in Queensland and has received the first $250,000 payment.
The lease is part of the company’s non-core Lucky Break Nickel Project that is directly west of Townsville and to the southeast of its larger SCONI scandium-nickel and cobalt project.
The agreement allows the privately owned company to mine and extract nickel laterite ore from the lease.
The second payment of $200,000 is due six months form the signing date or when a total of 30,000 tonnes of nickel laterite ore is extracted and removed, whichever is later, while the third payment of $200,000 is due 10 months from the start date or cumulative production of 60,000 tonnes of ore.
Metallica can also receive additional payments of $4 per tonne for any tonnages above 130,000 tonnes of nickel ore that is extracted and removed from the royalty area.
The privately owned company is responsible for conducting all mining operations and trucking activities and associated rehabilitation at Dingo Dam.
It is also responsible for keeping the Existing Tenement valid and in force and effect including, lodging in good time, all required reports and paying all fees, rates, royalties, taxes and rental payments due.
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