White Rock Minerals Ltd

White Rock Minerals enters $30 million JV agreement with Sandfire Resources

Sandfire can earn up to 51% in the Red Mountain Zinc Project by spending $20 million on exploration over four years.

Joint venture jigsaw puzzle
The project includes a 475 square kilometre tenement package covering historical VMS prospects

White Rock Minerals Ltd (ASX:WRM) has signed an earn-in and joint venture option agreement to allow Sandfire Resources NL (ASX:SFR) to farm into its Red Mountain Zinc Project in central Alaska.

The companies have joined forces to fund the exploration and development of new high-grade zinc and precious metals volcanogenic massive sulphide (VMS) deposits at Red Mountain, including high-grade zinc rich mineralisation at Dry Creek and West Tundra deposits as well as the newly defined Hunter prospect.

There are already two high-grade deposits at the project with an inferred mineral resource of 9.1 million tonnes at 12.9% zinc equivalent for 1.1 million tonnes of contained zinc equivalent.

White Rock Minerals managing director and CEO Matt Gill said: “Securing a high-quality partner with world-leading expertise in the exploration and development of base metals projects is a strong endorsement to the quality and potential of our globally significant high-grade zinc VMS Red Mountain project.

“It is significant for White Rock shareholders that the terms of agreement with Sandfire provide a funding pathway to advance the project through exploration to the point of advanced development studies.

These "allow White Rock to retain a 30% interest in any project development at the point when the economics of a project are well defined by a pre-feasibility study.”

JV structure

Sandfire’s JV funding obligations are structured across four stages and include an option to spend a minimum $20 million over four years to earn 51%, with a minimum contribution of $6 million in 2019.

As part of stage one, a minimum of $6 million is required to be spent on the project in year one (2019).

Sandfire can then elect to increase its interest in Red Mountain to 70% by sole-funding a further $10 million and by delivering a pre-feasibility study with an ore reserve within a further two years.

White Rock can then elect to contribute its percentage share of expenditure to retain its 30% interest.

Quick facts: White Rock Minerals Ltd

Price: $0.01

Market: ASX
Market Cap: $11.46 m

Add related topics to MyProactive

Create your account: sign up and get ahead on news and events


The Company is a publisher. You understand and agree that no content published on the Site constitutes a recommendation that any particular security, portfolio of securities, transaction, or investment strategy is...



Full interview: Personal Group confident in long term outlook after 'solid...

Deborah Frost, chief executive of Personal Group Holdings PLC (LON:PGH), talks Proactive London's Andrew Scott through the firm's interim results to June 2019. The company, which provides companies with employee benefits such as insurance and salary sacrifice programmes, said trading in the...

2 hours, 57 minutes ago

2 min read