- Resolution Minerals (RML) is running a farm under a joint venture agreement with Oz Minerals (OZL) to accelerate copper exploration at its Benmara project in the Northern Territory
- Oz Minerals will be able to acquire a 51% stake in Benmara by spending $4 million in exploration over five years, which will formalize the JV
- RML may retain interest by participating, otherwise OZL may earn 75% interest by spending $1 million over five years to produce a positive decision to mine
- Resolution says the partnership is validating its exploration strategy during its 2021 field season which has identified the potential for large-scale base metal deposits
- Resolution Minerals is trading up 15.4% at 1.5 cents while Oz Minerals is down 0.44% and trading at $21.39
Resolution Minerals (RML) has entered into a joint venture agreement with Oz Minerals (OZL) to accelerate copper exploration at its Benmara project in the Northwest Territories.
The project is located in the South Nicholson basin along the strike of Resolution’s Walford Creek silver, lead, zinc and copper project.
The parties are already working together on the Wollogorang project based in the Northern Territories through an agreement reached in August 2021.
Under the new deal, Oz Minerals will be able to acquire a 51% stake in Benmara by spending $4 million on exploration over five years.
If OZL manages to obtain the 51%, the joint venture agreement will be formalized.
Resolution will retain its 49% stake by electing to participate, otherwise OZL can earn a 75% stake by spending at least $1 million over five additional years to produce a positive final investment decision in mining.
In 2021, RML completed a reverse circulation program and airborne geophysical surveys that identified untested large-scale conductors and thick packages of shale units up to 200 meters thick.
Resolution CEO Christine Lawley said the joint venture agreement with OZ Minerals validates the company’s exploration strategy in its 2021 field season.
“These results have proven that the Benmara project has a geological setting equivalent to other regional deposits such as the McArthur River mine, Walford Creek and the Century mine,” she said.
While preparing for the drilling of RML’s flagship project in Alaska, the CEO said the development should excite shareholders as the deal allows the company to advance three major projects simultaneously, with Wollogorang and Benmara receiving funding external to OZL.
Resolution Minerals was up 15.4% and trading at 1.5 cents while Oz Minerals was down 0.44% and trading at $21.39 as of 1:51 p.m. AEST.