Antipa Minerals has entered into an A$30 million farm-in agreement with IGO Ltd. in respect of 1,563 km2 of tenements that are part of the Antipa’s 100% owned ground in the Paterson Province of Western Australia. The farm-in area is to be called the Paterson project.
IGO has committed to sole fund a minimum of A$4 million expenditure on the farm-in area within two and a half years of commencement of the farm-in agreement, with no less than 75% of this amount directed toward “in-ground” activities.
Provided IGO has not withdrawn, IGO may sole fund a further A$26 million expenditure within 6.5 years from commencement of the agreement to earn a 70% joint-venture interest in the farm-in area. Upon joint-venture formation, IGO shall free-carry Antipa to the completion of a feasibility study.
Antipa will manage operations during the initial two and a half year period and will receive a management fee of 10% on all eligible expenditure incurred in that period.