Coda Minerals Ltd (ASX:COD) has secured an additional 19% interest in the Elizabeth Creek Copper Project in South Australia thus taking the overall interest in the highly prospective tenement package to 70%.
The company has also notified Terrace Mining Pty Ltd, a wholly owned subsidiary of Torrens Mining Limited (ASX:TRN) that the requirement to invest a total of $6.62 million in the Elizabeth Creek Copper Project, including the Stage 3, $2.75 million Earning Obligation has been met.
Coda holds the rights and interests to earn up to 75% interest in the project under a farm-in agreement and anticipates completing its obligations by Q1 2021.
"Delighted to increase our holding"
Coda chief executive officer Chris Stevens said: “We are delighted to have increased our holding in the Elizabeth Creek Copper Project as we advance exploration at both the Emmie Bluff copper deposit and the IOCG targets Elaine and Emmie Bluff Deeps.
“Preliminary results from the recent drill campaign at Emmie Bluff have increased confidence in the extent of the Emmie Bluff deposit, initiating a second phase of drilling which is currently underway.
“This campaign will take the first steps towards a resource drill out while simultaneously exploring the most prospective expansion targets within the Emmie Bluff area.
“Coda is also advancing approvals for IOCG drilling at its high-priority IOCG targets Elaine and Emmie Bluff Deeps.
“These targets are strongly backed by historical drilling and geophysics.
“Our environmental and heritage team is expected to be on site to conduct field surveys at Emmie Bluff Deeps in February 2021.”
Farm-in agreement
Coda is progressing exploration activities at the Elizabeth Creek under the Free Carry Limit of the farm-in agreement and is expected to reach the end of the free carry expenditure limit, $8.62 million, within the first half of 2021.
On reaching the free carry limit, Coda and Terrace will form a joint venture to continue exploration and development activities.
Following formation of the joint venture, the parties will contribute to the expenditure of the project in accordance with their interest in the project.
As a result of Coda reaching the Stage 3 earning obligation, Terrace has granted to Coda an irrevocable option to acquire an additional 5% interest in the project for a payment of $ 1.5 million.
This option may be exercised at any time up to 60 days from the parties reaching a Decision to Mine.