Australian explorer Encounter Resources has signed an option agreement with BHP and offered to give up to 75pc stake in its 4,500sqkm Elliot Copper Project, the company said in a statement.


The project is located in Australia’s Nothern Territory and the region has large sediment-hosted base metal deposits.  


Both the companies will jointly explore Tier 1 copper deposits in the region and are expected to complete the initial validation of the project by December-end.


As per the pact, BHP will have to fund the project with AUD22mn ($16mn) for over 10 years if it closes the stake sale deal. Following the completion of the program, BHP may elect to fund additional validation programs during 2021 prior to making a decision on whether to exercise its option and to enter into an earn-in and joint venture agreement.




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