Chrysalis Resources (ASX:CYS) has completed regional soil sampling at both the Kabwima and Shikila Copper Projects in Zambia.
The samples form part of the conditions of the joint venture option agreement with First Quantum Minerals (TSE:FM), which has a Market Cap. of US$7.2 billion.
Under the option agreement, FQM has agreed to fund at least US$450,000 on exploration across the two projects for a six month period prior to earning the right to enter a two stage earn-in phase, and subsequent joint venture, put/call and/or net smelter royalty options.
FQM can then advance to a “First Earn-in” period involving an additional US$5 million expenditure within 2 years to earn a 51% interest in the projects and enter into a formal Joint Venture Agreement.
This will be followed by the second earn-in period to earn a total 80% interest by generating an NI 43-101 compliant resource and obtaining the grant of one or more large scale mining licences.
The company collected 7,104 soil samples from the Kabwima Project and 1,721 samples collected from the Shikila Project for a total of 8,825 samples covering 2,171 square kilometres.
Results are expected in early May.
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