Maximus Resources Limited (ASX: MXR) – $0.002
12 Feb 2015
Maximus Resources Limited (ASX: MXR) has signed a 3 year Farm-In Agreement with Monax Alliance Pty Ltd, a wholly owned subsidiary of Monax Mining Limited (ASX: MOX) for the Millers Creek IOCG Project located on the Gawler Craton region of South Australia.
Under the Agreement, Monax Alliance is to spend up to US$3 million on exploration and evaluation within 3 years to earn 80% equity in the company’s owned tenements. After the farm-in period has lapsed, each party is then required to contribute to ongoing joint venture expenditure once it is established.
Should the company elect not to enter into a joint venture with Monax Alliance, it can elect to sell its 20% share of the project to Monax Alliance for US$4.5 million and retain a Net Smelter Royalty of 2%.
Should Monax Alliance not meet the full US$3 million expenditure commitment within 3 years of signing the Farm-In Agreement, it will hold zero equity in the project and the company will retain 100% equity in the tenements.
The Millers Creek Project comprises four granted tenements that are wholly owned by the company and cover a total area of 2,342 square kilometres. The project area is located approximately 600km northwest of Adelaide between BHP Billiton’s Olympic Dam and Oz Minerals Prominent Hill operations (Figure 1).
Figure 1. Location of Millers Creek Project in proximity to Olympic Dam and Prominent Hill
For further information, visit www.maximusresources.com
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