Rox Resources (ASX: RXL) has formalised the Myrtle project joint venture with Teck Australia, the wholly-owned Australian subsidiary of Canadian mining giant Teck Resources (NYSE: TCK), in documents signed today.
The financial strength of Teck is a major advantage for Rox progressing Myrtle, where Teck can sole fund an initial $5 million to earn a 51% interest, and a total of $15 million expenditure to ultimately earn a 70% interest.
Myrtle already has an Indicated and Inferred JORC Resource of; 15.3Mt at 5.45% zinc and 1.40% lead for 6.84% combined zinc-lead, within a larger resource of 43.6Mt at 4.09% zinc and 0.95% lead for 5.03% combined zinc-lead.
Ian Mulholland, managing director of Rox, said “To have a company of Teck’s standing and financial strength behind Rox and our project is a superb outcome, and we look forward to the results of their exploration program this year.
"In due course we expect Teck will confirm their exploration program for 2011, which we believe will include at least 2,000 metres of diamond drilling.”
As part of the joint venture, 10 million Rox shares are to be placed with Teck at $0.05.
The joint venture is subject to a number of procedural conditions precedent, including approval by the Northern Territory Minister for Mines, which Rox said should be satisfied within the next one to two months.