Earaheedy Project (WA)

CAZ: 50%

The Earaheedy Joint Venture (EJV) is a joint venture between Cazaly Resources and Vector Resources (ASX: VEC).  The EJV controls over 1,700 km² of tenements covering the highly prospective Earaheedy Iron Project north of Wiluna in the Mid West region of Western Australia. The project includes a substantial 200km of strike along the highly prospective Frere Formation.

The EJV recently signed a Farm-In Agreement with global diversified mining house Anglo American, covering 890 km² of the EJV’s Earaheedy Iron Project.

The Farm-In Agreement allows for Anglo American to complete an initial “proof of concept” drilling program with a minimum of 7,500m of RC or diamond drilling to be completed as due diligence within 18 months of the Agreement. Following this, Anglo American may earn a 51% interest in the project by payment of an initial $1M in cash to the EJV and the expenditure of $20M within 4 years.

Anglo American may then earn a total 75% interest in the project by the completion of a Bankable Feasibility Study (BFS) and payment of a further $5M to the EJV.  In addition, following delivery of a positive BFS, a success payment of $45M would become payable by Anglo American to the EJV. The EJV may then elect to contribute to project expenditure or dilute to a royalty of 1.25% FOB. Normal industry standard terms also apply.

The EJV retains sole rights to the western and southern portions of EJV’s Earaheedy Project area which is also deemed to be highly prospective for manganese mineralisation. Field programmes are currently being planned for this project.