Date: Aug 20, 2018
Monax Mining (ASX: MOX) has galvanised into the strengthening titanium–vanadium space after securing an agreement to earn up to 80% of Mithril Resources’ (ASX: MTH) Limestone Well tenements that are “immediately along strike” from Neometals’ (ASX: NMT) Barrambie titanium-vanadium deposit near Meekatharra in Western Australia.
The Barrambie deposit hosts a JORC resource of 280.1 million at 9.18% titanium dioxide and 0.44% vanadium pentoxide.
According to Monax and Mithril, the Barrambie mineralisation can be traced along strike for numerous kilometres both north and south of the deposit including across the Limestone Well tenements.
Earn-in terms
Under the agreement terms, Monax will spend an initial A$150,000 on exploration in the first year of the agreement.
The company can then earn 60% in the project by spending A$1.5 million over three years, including the initial A$150,000.
After this period, Mithril has the option to contribute to advancing the project on a pro rata basis.
However, if Mithril chooses not to contribute, Monax has the right to lock-in an additional 20% by spending an additional A$1 million over two years.
Mithril then has the opportunity to contribute on a pro rata basis or dilute its holding in the project further.
