Musgrave Minerals Ltd (ASX:MGV) has executed a binding term sheet for an option, earn-in and joint venture on non-gold rights over the northern tenements at Musgrave’s Cue Gold Project.
The term sheet was signed with Cyprium Australia Pty Ltd which will have an exclusive 90-day option period to earn an 80% interest in Cue’s non-gold rights following an initial $10,000 payment.
Cue’s northern tenements host the Hollandaire copper deposit and multiple base metal targets that require follow-up drill testing.
Musgrave managing director Rob Waugh said: “This is an excellent outcome as it will allow Musgrave to retain 100% of the gold rights while advancing base metal targets through the discovery phase and reducing the company’s holding costs.
“This will enable the company to focus solely on gold exploration and development at the Cue project where Lake Austin North looks like developing into a significant gold system.”
Upon electing to exercise the option, Cyprium will be required to pay $250,000 immediately to Musgrave and then spend $2 million on exploration within two years to acquire the 80% interest.
Musgrave will retain a 20% free-carried interest to the completion of a definitive feasibility study.
Gold exploration and development at Cue will continue to be Musgrave’s focus.
This includes drilling of the new Lake Austin North discovery as well as additional prospective targets on the salt lake which represent further potential to grow Cue’s resource inventory.