Davis Index: Market Intelligence for the Global Metals and Recycled Materials Markets

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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