Business
Mukai Project - Agreement for Joint Venture
Mukai Project - Agreement for Joint Venture.
About this update from Tertiary Minerals Plc
[{"type":"text","content":"\n\n\n \n7 August 2024\nTertiary Minerals plc (\"Tertiary\" or the \"Company\")\n \nMukai Project - Agreement for Joint Venture\n \nThe Company is pleased to advise that its newly incorporated Zambian subsidiary, Copernicus Minerals Limited (\"Copernicus\"), has signed a binding letter of agreement (\"BLA\") with First Quantum Minerals Limited (\"First Quantum\") on the Mukai Copper Project in Zambia.\nCopernicus is 90% owned by Tertiary Minerals (Zambia) Limited which is 96% owned by Tertiary Minerals plc.\nKey Terms\n· The BLA grants First Quantum an initial exploration due diligence period of 24 months during which First Quantum is committed to fund a minimum US$1.5 million of exploration expenditure, including US$0.5 million in Year 1 (Phase 1).\n \n· First Quantum may then enter into an earn-in and joint venture agreements to earn:\n \nØ an initial 51% joint venture interest in the Mukai Exploration Licence (\"the Licence\") by demonstrating a Mineral Resource containing at least 80,000 tonnes of contained copper metal within a further 24 months (Phase 2); and\n \nØ a further 29% joint venture interest (total 80%) by completing a Mining Study and delivering a Notice of Intent to Mine within a third 24-month period (Phase 3).\n \n· First Quantum must continue sole funding the project until receipt of regulatory and governmental permits for the commencement of construction of a mining project. At that point, Copernicus may either participate at a 20% contributing equity level or dilute down towards a minimum of 10% at which point the participating interest automatically converts to a 1.5% Net Smelter Return Royalty (NSR).\n \n· Should First Quantum continue through all phases of the project, they will make progressive payments to Copernicus totalling up to US$2 million over the three 24-month phases of the BLA and subsequent agreements.\n \n· The BLA is subject to various conditions precedent including renewal and transfer of the licences from Mwashia Resources Limited to Copernicus which is currently in progress (see news release dated 6 June 2024).\n \nMore detailed information on the BLA is set out below.\n \nThe Licence lies adjacent to First Quantum's Trident Project which compr...