PERTH (miningweekly.com) – ASX-listed Sandfire Resources has withdrawn from an earn-in and joint venture agreement over the Red Mountain zinc and precious metals project, in Alaska.
Sandfire in March last year struck an agreement with fellow-listed White Rock Minerals to earn up to a 51% interest in the project by spending A$20-million on exploration over a four-year period.
A minimum A$6-million spend was required within the first year of the four-year earn-in period.
To date, Sandfire has spent A$8.5-million on the project, and will withdraw without any retained interest being earned.
“While White Rock understands that commercial decisions can be at odds with individual project pathways, the retention of 100% of the Red Mountain project will allow White Rock to identify alternate funding to advance the zinc and precious metals-rich volcanogenic massive sulphide deposits while also pursuing exciting new gold prospects at Last Chance, with 100% of the upside exposure provided to White Rock shareholders,” said MD and CEO Matt Gill.
“Our aim is to create value for our shareholders through exploration success, a core strength of the White Rock board and management team.”
Meanwhile, White Rock told shareholders that Sandfire would retain an 11.3% shareholding in White Rock.