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Independence joins Encounter Resources as new partner to advance Paterson copper-cobalt exploration

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Global Mining Review,


The directors of Encounter Resources Ltd (Encounter) have welcomed Independence Group NL (IGO) as a new major shareholder and partner in advancing the Yeneena copper-cobalt project in the Paterson province of Western Australia.

IGO has subscribed for a placement of 24 million ordinary shares at a price AUS$0.075 – a 60% premium to 20 trading day VWAP - to raise a total of AUS$1.8 million. Encounter shall apply a minimum of 80% of the funds raised towards advancing Yeneena. The placement will be completed pursuant to the company’s 15% placement capacity under ASX Listing Rule 7.1.

A technical committee will be formed with equal representation from Encounter and IGO to design exploration activities at Yeneena. At any time before 1 March 2020, IGO may elect to enter an earn-in agreement to spend up to AUS$15 million to earn a 70% interest in Yeneena.

As a result of the placement and earn-in option, Encounter’s copper-cobalt exploration in the Paterson Province will be well funded and progressing with a highly successful partner. This complements Encounter’s high quality gold portfolio in three of Australia’s most prospective gold regions: the Tanami (via five 50:50 joint ventures with Newcrest Mining Ltd), the Paterson province and the Laverton tectonic zone.

Commenting on the IGO partnership, Encounter Managing Director, Will Robinson, said: “IGO is a highly successful exploration and mining company. Their support for Encounter is confirmation of the quality of Encounter’s exploration team, strategy and portfolio of projects. The Paterson Province is a prime location for copper-cobalt discoveries in Australia. Recent activity by a number of major mining houses highlights and validates the enormous potential of the region. We are delighted to be working alongside the highly respected IGO team to advance large-scale copper-cobalt opportunities along this 70 km long corridor.”

Yeneena copper-cobalt project

A major strategic land holding (1250 km2) in the emerging Proterozoic Paterson province covering a 70 km long corridor south of Nifty. The Paterson province is a proven mineral region with a consistent history of discoveries and with increasingly active majors.

Read the full report here.

Read the article online at: https://www.globalminingreview.com/exploration-development/12112018/independence-joins-encounter-resources-as-new-partner-to-advance-paterson-copper-cobalt-exploration/

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This article has been tagged under the following:

Australian mining news Copper mining news