Rumble Resources Ltd (ASX:RTR)’s earn-in partner, AIC Mines Ltd, has updated the market on exploration at the Lamil gold-copper project in WA’s Paterson Province.
AIC recently kickstarted a 5,000-metre reverse circulation (RC) drill program at Lamil as part of its mission to test four new targets at the gold and copper camp.
Sundew, Flame Pea North and Flame Pea South will all be tested for precious and base metal occurrences, while the Foxtail target will be explored for Nifty-style copper mineralisation.
RC drilling begins at Lamil as diamond drilling comes to a close: since exploration kicked off in June, the diamond rig has drilled four holes, covering more than 1,500 metres, at the Lamil Dome prospect.
Currently, the rig is stationed at the Goodenia target, and once work is complete, it will move to the final hole of the program at the Firebush target.
AIC’s exploration update comes soon after the company met its expenditure requirements to earn a 50% interest in Lamil, meaning Rumble can now move to form a joint venture (JV) with its fellow ASX-lister.
If this occurs, both parties will walk away with a 50% stake and contribute equally to exploration at the gold and copper property.
The Lamil earn-in and joint venture
Under an agreement with Rumble, AIC has the right to earn a 50% interest in the Lamil project by spending $6 million over four years.
From there, it can earn a further 15% in stage two by spending $4 million over one year if Rumble decides not to start contributing.
AIC recently met the first stage of expenditure requirements to earn a 50% interest in the Lamil Project and has provided notice to Rumble, meaning it can now elect to form a joint venture in which both parties will hold a 50% interest and contribute equally to exploration expenditure.
If Rumble does not elect to form the joint venture, then AIC Mines can elect to earn an additional 15% interest by sole funding a further $4 million in exploration expenditure within 12 months.
On the other hand, if AIC does not elect to sole fund and earn the additional 15%, then each party will hold a 50% interest in the joint venture and can either contribute to ongoing exploration expenditure equal to its interest or have its interest in the joint venture diluted according to a standard dilution mechanism.
Rumble will need to decide whether to form a joint venture by the end of next month, and further updates will come to hand once AIC’s stage two position is finalised.
With the stage one expenditure requirement now met, Rumble is expected to receive $250,000 worth of AIC shares by the end of the month.
AIC must also subscribe for $250,000 worth of Rumble shares as part of the milestone payment.