Cassini Resources Ltd's (ASX:CZI) managing director, Richard Bevan, has orchestrated a plan to fast-track the development of the company’s wholly-owned West Musgrave Project in Western Australia.
Cassini has signed a binding Heads of Agreement with OZ Minerals Ltd (ASX:OZL), who can earn up to a 70% interest in the project by sole funding a minimum of $36 million on development and exploration.
This therefore provides Cassini with free-carry through completion of a Definitive Feasibility Study and decision to mine.
The deal includes a minimum $8 million of expenditure on regional exploration, and provides a clear and defined development pathway to cashflow.
Cassini will manage the Nebo-Babel Definitive Feasibility Study and regional exploration work program.
West Musgrave is Australia’s largest undeveloped copper nickel deposit, with over 200 million tonnes of resource at 1.28% copper equivalent that could be mined with a shallow open pit.
Richard Bevan, managing director for Cassini, commented:
“Cassini welcomes the agreement with OZ Minerals which allows the company to progress the West Musgrave Project through the current low period of the commodity price cycle.
"As well as funding exploration and development of the project, the partnership provides access to the significant technical capabilities of OZ Minerals, a company with significant base metal project development expertise.
“We see this as a great deal for the company and our shareholders as it provides for a significant level of funding to progress the project which will give us a clear line of sight on a decision to mine and subsequently, potential cash flow for the company."
Andrew Cole, managing director for OZ Minerals, added:
“This deal is strategic and is more about earning into a very significant proportion of a new mining province rather than just a single project."
Today's deal with OZ Minerals is a clear endorsement of the potential of the West Musgrave Project.
OZ Minerals is a strong and credible partner, and the deal transitions Cassini on the path to development and potential cash flows.
Proactive Investors Australia is the market leader in producing news, articles and research reports on ASX emerging companies with distribution in Australia, UK, North America and Hong Kong / China.