Rox Resources (ASX: RXL) has received a $500,000 subscription from Teck Australia Pty for 10 million shares at $0.05 as one of the terms of the earn-in and JV agreement at the Myrtle Zinc Lead Project.
Teck Australia is the wholly-owned Australian subsidiary of Canadian mining giant Teck Resources (NYSE: TCK).
Rox signed the JV with Teck to explore the project’s tenements which cover 669 square kilometres adjacent to the world class McArthur River zinc lead deposit in the Northern Territory.
Ian Mulholland, Rox managing director, said “Teck will be undertaking the exploration at Myrtle this year, and they obviously have confidence in the results they might obtain.”
“By taking up these shares Teck will realise the benefit of their work being reflected in Rox’s share price, while at the same time Rox gets another $500,000 towards our exploration budget.”
JV approvals received 2 May included stamp duty assessment and the signing of deeds of assignment and assumption with various associated third parties.
Other terms of the JV include that Teck spend $5 million to earn-in an initial 51% stake within four years including a minimum of $1 million and 2,000 metres drilling by 21 July 2012.
Teck can increase the company’s interest in the project to 70% by spending an additional $10 million over an additional four years.
Teck plans to commence the 2,000 metre drill program at Myrtle this year.
Myrtle has a JORC Indicated and Inferred Resource of 15.3 million tonnes grading 5.45% zinc and .40% lead for 6.84% combined zinc + lead within a larger resource of 43.6Mt grading 4.09% zinc and 0.95% lead for 5.03% combined zinc + lead.
The project also has access to shared infrastructure from McArthur including bitumen roads, gas pipelines and a bitumen airstrip. Myrtle might also have access to the concentrate ship loader at the Bong Bong port.