Rimfire Pacific Mining NL (ASX:RIM) has received a strong vote of confidence from existing partner Golden Plains Resources Pty Ltd (GPR) with a new earn-in and JV agreement covering another of its highly prospective assets in the Lachlan Fold Belt of central NSW.
The agreement valued at $7.5 million is for Rimfire’s Avondale Project that includes 546 square kilometres of ground outside the current 103 square kilometres Fifield earn-in JV with GPR.
Set to “deliver further discoveries”
Managing director Craig Riley said: “The company is very pleased that GPR has chosen to expand their level of commitment and confidence in the ground held by Rimfire to deliver further discoveries.
“We look forward to working with GPR and delivering value accretive results for our shareholders.”
Details
Under the Avondale Earn-in, GPR has committed to spend $1 million in the first year with no withdrawal rights.
The first cash call for Year-1 expenditure is anticipated to be made in July.
On successful completion of the Avondale earn-in commitments, GPR and Rimfire intend to form an unincorporated joint venture over the area.
GPR has the option to contribute a further:
- $1.5 million in year 2 to earn a 40% interest in the property;
- $2.5 million in year 3 to increase their interest to 70%; and
- $2.5 million in year 4 to earn a further 5% interest in the JV area.
Planning for programs kick-off
Rimfire will begin planning for programs initially focusing on the cobalt and platinum group elements (PGE) potential of previously identified prospects that warrant immediate further work.
With the execution of the Avondale Earn-in, Rimfire now has management control over four project areas in the Lachlan Fold Belt in central NSW as follows:
- Fifield: Gold and PGE with GPR earning up to 50.1% and RIM free carried to development;
- Avondale: Cobalt, PGE’s and gold with GPR earning up to 75%;
- The Valley: Porphyry copper-gold with RIM holding 100%; and
- Cowal: Copper-gold, RIM 100%.