Business
Term Sheet for Agreement - Konkola West, Zambia
Term Sheet for Agreement - Konkola West, Zambia.
About this update from Tertiary Minerals Plc
[{"type":"text","content":"\n\n25 September 2023\nTertiary Minerals plc (\"Tertiary\" or \"the Company\")\n \nTERM SHEET FOR AGREEMENT\nKONKOLA WEST PROJECT, ZAMBIA\n \nTertiary Minerals plc is pleased to announce that it and its local partner, Mwashia Resources Ltd (\"Mwashia\") have signed a detailed, largely non-binding, term sheet (\"Term Sheet\") for an earn-in and joint venture agreement (\"EIJV Agreement\") with a third party (\"the Third Party\") providing for the Third Party to earn into Exploration Licence 27067-HQ-LEL (\"Licence\"), the Konkola West Project in Zambia.\nThe Third Party is a well-resourced mineral exploration and mining company and the Term Sheet sets out the framework for the EIJV Agreement which is subject to finalisation and which will be subject to certain conditions precedent relating to government approvals.\nThe Term Sheet proposes that the Third Party will commit in Stage 1 to a specified drill programme to be completed within 14 months of signing the EIJV agreement whereupon it will earn an initial 51% interest in the licence (39% Tertiary and 10% Mwashia) with the option to earn 70% in Stage 2 (20% Tertiary and 10% Mwashia) by sole funding a cumulative US$6 million on exploration within 48 months of signing the EIJV Agreement.\nThe Term Sheet includes a binding clause between Tertiary and Mwashia that the timeframes set out in Tertiary's current option and joint venture arrangement with Mwashia will be paused until superseded by the EIJV Agreement or until the Term Sheet or proposed EIJV Agreement terminates for any reason.\n \nMore detailed information and details of the Third Party will be announced on conclusion of a binding agreement.\n \nCommenting today, Executive Chairman Patrick Cheetham said:\n\"I am delighted to announce the signing of this term sheet and a re-alignment of our existing agreement with Mwashia. The prize at Konkola West is the potential deep down-dip extension of one of the world's great copper deposits which is being mined on mining leases adjoining Konkola West at the Konkola and Lubambe copper mines. It is envisaged that the Stage 1 drill holes will extend beyond 1km depth. Tertiary will now seek to enter into a binding EIJV Agreement with the Third party and Mwashia as soon as possible.\"\nFor more information please contact:\n\n\n\nTertiary Minerals plc:\n\n\n\n\nPatrick...