Corcel, the natural resource exploration and development company with interests in battery metals, including nickel, cobalt and rare earth elements, announces that it has entered into a farm-out and joint venture agreement with Riversgold Ltd (ASX: RGL) covering its recently acquired rare earth elements project at Mt. Weld, in Laverton, Australia.
o AUD 30,000 in cash immediately payable to Corcel
o RGL earns a 50% interest in the project through paying 100% of the work programme, spending AUD 500,000 over a 12-month period
o CRCL has the right, but not the obligation, to allow the farm-in of a further 20% for an additional AUD 1,000,000 carry on the work programme bringing total carried expenditure to AUD 1,500,000
o RGL will operate the tenements and direct the exploration programme on behalf of Corcel
Chief Executive Officer, Scott Kaintz commented: “We are delighted to follow directly our acquisition of Mt. Weld with a farm out of half of the position to fund 100% of the near-term development and exploration costs. This is highly accretive against our acquisition cost and further reinforces the Board’s view of the project’s immediate potential upside and overall attractiveness.
Our partner, Riversgold Ltd, brings with them an experienced exploration team well positioned to lead the work on the ground in Australia. We look forward to working with them in 2023 to take the project forward.”
Corcel has entered into a farm-out and joint venture agreement with Riversgold Ltd (together the “Parties”), a natural resource exploration business listed on the ASX. The Parties have agreed that RGL will make an immediate payment to Corcel of AUD 30,000 and will also commit to funding 100% of an initial exploration programme (“First Earning Period”) of AUD 500,000; expected to be completed in 2023.
Following total project expenditure of AUD 500,000 during the First Earning Period, RGL will earn a 50% interest in the project. If RGL fails to spend AUD 500,000 during the First Earning Period, then it will be deemed to have withdrawn from the farm-in agreement and will retain no interest in the project. As part of the farm in, there is a minimum initial carried spend of AUD 100,000.
After the First Earning Period, Corcel may either fund the project according to its shareholding, or elect to allow RGL (at its discretion) to farm-in to an additional 20% of the project in exchange for further funding of AUD 1,000,000 of exploration expenditures (the “Second Earning Period”), bringing the total funding of the project over both periods to AUD 1,500,000. If RGL during the Second Earning Period fails to fund AUD 1,000,000 then it will be deemed to have withdrawn from the Second Earning Period, and will retain its initial 50% interest in the project.
The Parties will operate the project as an industry standard joint venture with RGL managing the tenements and operating as exploration manager. Additional announcements on the initial stages of exploration activities at the site will be announced in due course.
About the Mt. Weld REE Project
The “Mt Weld (P38/4489) Project,” consists of granted mineral tenement, located 1.4 km (0.9 miles) west-north-west of Lynas Rare Earths Limited’s Mt. Weld REE Mine near Laverton in Western Australia. The Project covers 171 hectares in size and the tenement straddles the mine access road to Lynas’s Mt. Weld Mine. The tenement is predominantly covered by recent transported sediments obscuring the underlying geology. Four discrete undrilled magnetic features, potentially representing carbonatite intrusive complexes have been interpreted from open file high resolution magnetic surveys and warrant further investigation.
For further information, please contact:
Scott Kaintz 020 7747 9960 Corcel Plc CEO
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