Archer Exploration announced that it has opted to terminate the Farmin and Joint Venture Agreement with Cobalt Bull (CB).
It said the decision follows a “favourable review” undertaken on the cobalt potential of its non-core exploration assets in South Australia’s mid north region and CB’s failure to meet the final conditions precedent as stipulated as part of the agreement.
The JV agreement allowed CB to earn a 75% interest in certain tenements, including the Ketchowla Cobalt Manganese Project, and allowed Archer to terminate if CB was unable to complete a capital raising or ASX listing by 31 January 2017.
“In light of the strong interest shown in cobalt and the recent significant increase in the manganese ore price, Archer has decided to terminate the Agreement,” said Archer Executive Chairman Greg English.
“Termination of the Agreement allows Archer to retain full ownership of the tenements (including the Ketchowla Cobalt Manganese Project) meaning that Archer shareholders will gain 100% of the benefit of any exploration success.”