Junior explorer Integrated Resources has entered into a conditional farm-in agreement to acquire 3 000 km2 of copper exploration tenements in Zambia.
Under the terms of the transaction, Integrated would pay a signing fee of $120 000 for the four tenements, along with a $50 000 exclusivity fee, which was paid in December, the company said in a statement.
Accordingly, Integrated Resources would acquire an initial 51 percent interest in all four tenements by spending $325 000 on exploration within a 15-month period. An additional 34 percent interest could be gained if the company spent $500 000 over a 24-month period.
The remaining 15 percent interest in the projects would be retained by the vendor, which would meet pro-rata expenditure shares, or could be acquired by Integrated through the issue of equity.The company told shareholders that the Kalengwa South project had been determined as the flagship project within the tenement area, and covers some 557 km2.
Integrated said that summary data on the project, provided by the vendor, indicated that a number of prospects have already been identified, with historical samples reporting significant copper and gold mineralisation.
Of the seven advanced targets, three have significant prospects and have been prioritised for further exploration.