Investigator Resources, operating under the name Fram as per a heads of agreement, has established a joint venture (JV) with Thor Energy for the Molyhil Tungsten-Molybdenum project in Australia’s Northern Territory.
This collaboration follows Investigator’s $1m investment in the Molyhil tenements and its acquisition of a 25% interest, alongside the completion of Thor’s sale of a 40% interest in the Bonya project.
As part of the JV agreement, Investigator will secure a 25% stake in Fram and a 75% interest in the Molyhil Project, in return for the sale of the Bonya interest.
The first stage of the JV stipulates that Investigator will issue $250,000 (A$377,895) worth of shares at $0.05 each to Thor, thereby earning a 25% interest in the projects.
The second stage of the agreement allows Fram to notify Molyhill of its intention to increase its stake by an additional 26%, which would result in a cumulative 51% interest.
To achieve this, Fram is required to invest $2m in exploration by the third anniversary of the JV’s inception to secure the additional 26%.
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The final stage of the earn-in process involves Fram indicating its desire to acquire a further 29% interest in the tenements, aiming for an 80% total stake.
To earn this additional 29%, Fram must commit $5m to exploration activities by the sixth anniversary of the JV’s start date.
Investigator managing director Andrew McIlwain said: “Having undertaken the work to re-validate the Molyhil resource, Investigator met the Stage 1 minimum commitment and has elected to form the joint venture, giving Investigator a 25% interest in the Molyhil Project and associated tenements.
“Whilst we haven’t undertaken any work on the adjacent Bonya tenement, Thor’s 40% joint venture interest will be assigned to Investigator, and we look forward to working with Arafura (60% joint venture partner over the Bonya tenement) on advancing targeted tungsten and copper exploration prospects.
“The Northern Territory Government will provide continued support of the project through co-funding of the drill programme planned for later in 2024 to follow up on targets generated from their cofunded geophysics survey in 2023. We are keen to commence that drill programme around Molyhil once clearances have been obtained from the Central Land Council”.
