Fortescue Metals Group subsidiary FMG Resources has acquired 51% interest in Tasman Resources’ Lake Torrens Project in central South Australia, adjacent to BHP Billiton’s world-class Olympic Dam deposit.
In mid-2019, the project was farmed out to Fortescue Metals Group with the option to earn a 51% interest rate by investing $4 million plus GST over three years.
According to the ASX Announcement, FMG Resources completed a deep diamond drilling at the project, pursuant to the Lake Torrens Farm In and Joint Venture Agreement entered into on 13th June 2019.
“Fortescue has 60 days from the earning of the Initial Interest of 51%, within which to give Tasman the notice of its election on whether to continue sole funding towards achieving 80% Joint Venture interest. Tasman will update the market when further information is provided by Fortescue,” reads the announcement signed by Tasman Resources Executive Chairman Greg Solomon.
The terms of this agreement remain unchanged, the company said, including:
- Fortescue’s option to increase its Joint Venture interest to 80% by sole funding a further A$7 million plus GST on exploration expenditure within a further 5 year period.
- Tasman’s option to either purchase Fortescue’s Initial Interest for the same price as the total Expenditure incurred by Fortescue on Exploration in the Tenement, or consent to Fortescue selling the initial interest to a Third Party.