LOMERO FARM IN AND JOINT VENTURE AGREEMENT WITH WFE
(ASX:KDL) Kimberley Diamonds Ltd (KDL) is pleased to announce that it has entered into a Farm In and Joint Venture Agreement (JVA) with ASX listed Winmar Resources Limited (WFE) in relation to KDL's Lomero copper-gold project in Spain (Lomero Project).
KDL has recently put the Lerala Diamond Mine in Botswana in production. The transaction with WFE will allow KDL to focus on diamond mining and sales.
KDL and WFE have entered into a farm in and joint venture arrangement for the Lomero Project on the following key terms:
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On execution of the JVA and payment of a condition precedent payment of AUD$200,000, WFE has a right to earn up to a 70% interest in the tenements over a 3 year period, starting 13 May 2016.
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WFE must acquire an initial 10% by spending €400,000 in Year 1 (First Commitment).
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WFE may then elect to acquire a further 35% interest (for a total 45% interest) by spending €3 million in Year 2.
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WFE may then elect to acquire a further 25% interest (for a total 70% interest) by spending a further €2 million in Year 3.
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WFE may withdraw at any time after the First Commitment has been completed. If WFE withdraws during Years 2 or 3, its interest earned to date will revert back to KDL.
The arrangement with WFE will meet the expenditure requirements for the Lomero Project for the initial three years. KDL will retain a 30% interest in the project, thereby providing its shareholders with continued exposure to the project and to copper-gold markets.
KDL looks forward to working with WFE to progress the Lomero Project. Mr Rod Sainty, a former Director of KDL, has been appointed by WFE as Managing Director and will lead the Lomero exploration program for WFE.
About the Lomero Project
The Lomero gold-silver-copper-zinc project is located 60km north of the deep-water port of Huelva in Andalucia, Spain, within Spain's premier mineral district, the Iberian Pyrite Belt. It is located just 8km west of the large Aguas Teñidas copper mine operated by Trafigura. A rail line 4.5km east of Lomero is used to transport mineral concentrates to the port of Huelva.
Lomero is a 1km-long tabular volcanogenic massive sulphide (VMS) deposit with the highest gold grade of any mineral deposit within the Iberian Pyrite Belt. Previous mining operations extracted at least 2.6 million tonnes of massive sulphide ore containing an average grade of 5 g/t gold and 1.2% copper.
KDL was awarded Investigation Permit (IP) 14977 over the deposit on 7 October 2014 following a competitive public tender process conducted by the government of Andalucia. The tender requirement was a proposed exploration programme and budget to investigate the mineral resource and potential. Following the award, KDL was required to complete a number of additional administrative steps and satisfy a review process before the IP could be formally granted. The grant resolution was issued to KDL on 13 May 2016, triggering the commencement of the Year 1 expenditure requirement.
For further information please contact:
Noel Halgreen Holly Taylor
Managing Director Corporate Communications
[email protected] [email protected]