Emmerson Resources Ltd (ASX:ERM) has terminated an exploration earn-in and joint venture (EEJV) agreement with TRL Tennant Creek Pty Ltd over the Southern Project Area (SPA) at Tennant Creek Project in the Northern Territory.
The company has taken this action to clear a path to deliver on its royalty business model and accelerate exploration to continue to build a high-grade gold pipeline.
Managing director Rob Bills told Proactive: “This has broken the deadlock that has been going on for a while – the joint venture is between Emmerson and Territory Resources (TRL).
“TRL had to spend $5 million over five years to earn 75% - they haven’t been able to do that and our shareholders are very aware that things haven’t happened as per the schedule so we decided to draw a line under it.”
Termination of the EEJV will also render the Small Mines Joint Venture with TRL inoperative.
Emmerson retains 100% ownership of the Southern Project Area which hosts the Eldorado, Susan, Black Snake, TC8, Malbec West and Chariot projects.
The company also holds 100% of the Northern Project Area which hosts the Jasper Hills, Golden Slipper, Edna Beryl and recently discovered, high-grade gold, Mauretania project where drilling is scheduled to begin later this month.
Bills said Edna Beryl was subject to a separate agreement and TRL had been issued a default notice with 28 days to remedy all breaches referred to in the notice otherwise the Tribute Agreement would terminate.