Tartana Resources is snapping up a raft of Newcrest Mining tenements as it builds its presence in the Chillagoe area.
The company, which is working towards a restart of the former Tartana copper sulphate plant, has negotiated a sale and purchase agreement with Newcrest for the Bulimba project.
Tartana says the EPMS cover more than 1250sq km and would place it as one of the more significant explorers in the Chillagoe region based on tenure area.
It is planning an airborne EM program to identify targets with follow up mapping and sampling prior to drill testing.
Tartana is set for a back-door listing on the ASX this year through a reverse takeover involving R3D Global.
The two companies have signed an implementation deed which outlines the terms of the takeover of Tartana.
R3D proposes to lodge its prospectus with ASX next week, which will seek to raise $4.25 million as a condition of the implementation deed.
Under the Bulimba agreement with Newcrest, Tartana Resources can spend $336,000 on exploration and can then seek transfer of the EPMs to R3D at no cost.
If an orebody is discovered which exceeds 1 million ounces gold equivalent in JORC 2012 compliant resources, Newcrest can ‘claw back’ 75 per cent of the project by paying Tartana three times its exploration expenditure at the date of the claw back.
Otherwise, Newcrest will be entitled to a 1.5 per cent or 2 per cent NSR royalty on any future production from these tenements, with the royalty level reflecting whether the head grade of this future production is below or above 1 g/t gold equivalents.