Under the $7-million agreement, St Barbara will pay APC $1.25 million in cash and a minimum exploration spend of $1.75 million during the initial 12-month earn-in period.
APC managing director Matt Shackleton said: “The strategic intent of the board of APC is to focus on the completion of the definitive feasibility study into the development of the Lake Wells SOP Project.
“At the same time, however, we have always been very aware of the inherent value of the Lake Wells Gold Project.
“I am confident that we now have the right people, right companies and right project area in place to generate some significant success at what is one of the state’s very prospective and important mineral regions.”
After the first-year earn-in period, St Barbara can elect to earn a 70% interest in the tenements by spending a further $3.5 million on exploration over a 24-month period and reimburse APC up to $500,000 in costs previously spent on exploration.
APC will retain 100% of all potash mineral rights and its 30% interest will be free-carried to the completion of a bankable feasibility study.
St Barbara has targeted investments in early to advanced-stage exploration through earn-in arrangements, joint ventures or direct equity investments.