https://www.miningweekly.com

Sandfire buys Ventnor out at Green Dragon project

23rd August 2016

By: Megan van Wyngaardt

Creamer Media Contributing Editor Online

  

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JOHANNESBURG (miningweekly.com) – ASX-listed Sandfire Resources is purchasing the remaining 65% of joint venture (JV) partner Ventnor Resources’ Thaduna/Green Dragon copper project for $3-million.

Sandfire will pay Ventnor $2-million in shares, a further $1-million if it decides to mine the project and a 2% net smelter return royalty of up to 90 000 t of copper and an ongoing 1% royalty on further production.

Ventnor entered a JV with Sandfire over Thaduna/Green Dragon in December 2013.

At the time, Sandfire paid Ventnor $3-million for an initial 35% interest in the project with the ability to earn up to 80% under the terms of the JV.

The Thaduna/Green Dragon project is located 40 km east of Sandfire’s flagship DeGrussa project and represents the largest known copper resource in the Doolgunna-Bryah basin region outside of DeGrussa.

The deal will allow Ventnor to maintain an interest in the project while releasing funds for its Black Dragon copper/nickel prospects north-east of Kalgoorlie.

Edited by Mariaan Webb
Creamer Media Senior Deputy Editor Online

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