Australian mineral exploration company Auzex Resources (ASX: AZX) and Hillgrove Resources (ASX: HGO) has executed a Heads of Agreement to enable Hillgrove to explore Auzex’ Khartoum EPM 14797 tenement in north Queensland for copper, lead, zinc, nickel and gold mineralisation.
Auzex has established the presence of a potential world-class tin project within this tenement, which remains unaffected by the terms of this Agreement.
At the date of execution of a Joint Venture Agreement, Hillgrove to pay $50,000 in cash and issue to Auzex ordinary shares in Hillgrove to the value of $50,000 based on the share price immediately prior to signing of the Agreement.
Hillgrove to spend a minimum $500,000 within two years to earn 80% of all copper, lead, zinc, nickel deposits discovered, and 50% of gold-silver deposits discovered within EPM 14797.
The company may withdraw at any time prior to meeting minimum expenditure requirement with no retained equity.
Auzex may retain 20% of any copper, lead, zinc and nickel discovery subject to prorata exploration expenditure contributions once Hillgrove equity is earned, as well as receiving a 2% net smelter return royalty from any future mine production associated with the Hillgrove interest.
The potentially world-class Khartoum tin project is unaffected by this transaction and remains wholly owned by Auzex.