White Rock Minerals Ltd (ASX: WRM, OTCQX: WRMCF) and Thomson Resources Ltd have signed an amendment to amend an equity and joint venture agreement entered into in May last year.
Companies see greater benefit in capturing the polymetallic value of known Mt Carrington deposits at Thomson’s New England Fold Belt Hub and Spoke (NEFBHS) central processing concept in northern New South Wales.
New emphasis on the polymetallic project
The amended agreement allows Thomson to focus its expenditures on advancing the Mt Carrington polymetallic project through exploration and development activities.
White Rock’s JV partner will initially focus on incorporating the known Mount Carrington gold-silver-zinc-copper mineralization into the NEFBHS Mineral Resource Estimates (MRE), where it targets an aggregate of an equivalent resource in silver in excess of 100 million base ounces to promote the potential development of a central processing facility.
MRE to report combined mineralization
The existing 2012 and 2004 JORC MREs of Mt Carrington will be updated to JORC code 2012 to report combined gold-silver-zinc-copper mineralization and incorporated into the NEFBHS centralized processing pathway study which is ongoing.
The companies have agreed to changes to the compensation structure as part of the amended agreement. There will now be a two-step exploration gain and a joint venture option, whereby Thomson can gain up to 70% of the White Rock Mt Carrington gold-silver base metal project and, upon election of Thomson , form a JV.
Two-step gain with JV option
There will be two stages to the JV. Under Stage 1, which takes place over three years beginning March 7, 2022, Thomson will earn 51% by achieving at least $5 million in expenditures, including exploration activities, maintenance operational activities and maintenance and minor capital repairs and maintenance.
Stage 2 gives Thomson the opportunity to earn an additional 19% in the project. During this period, this company must incur at least an additional $2 million in expenditures, including exploration activities, operational care and maintenance, and minor capital repair and maintenance. Stage 2 must last two years from the date of the company election to progress to Stage 2.
White Rock is carried for free during the exploration period. Thomson will continue to manage the project and have full responsibility for keeping it in good standing and funding the operational costs of site upkeep and maintenance until the joint venture is formed, either on a 51:49 or 70 basis. :30, with major investment elements. be borne equally by both companies.