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(Alliance News) - Tertiary Minerals PLC on Tuesday said it has signed an earn-in agreement with KoBold Metals Co and Mwashia Resources Ltd, regarding its copper project in Zambia.
Tertiary Minerals shares were trading 21% higher at 0.16 pence on Tuesday morning in London.
The Macclesfield, England-based mineral exploration and development company said its subsidiary Tertiary Minerals (Zambia) Ltd signed the definitive earn-in with a subsidiary of KoBold Metals Co, and with Tertiary's local partner Mwashia Resources Ltd.
The agreement, Tertiary explained, provides for US-based mineral explorer KoBold to earn into the Konkola West copper project in central Zambia.
Tertiary added that the earn-in is intended to facilitate deep drilling to explore for projected extenstions of high-grade copper ore. It said KoBold is committed to completing at least two drill holes within 14 months, and expects work to start by the end of May 2024.
Once the Stage 1 drill programme is completed, Tertiary, Mwashia and KoBold will form a joint venture to hold the licence and enter a shareholder agreement, with KoBold holding 51% and Tertiary 39%. KoBold can at any time purchase Mwashia's 10% stake for USD3.5 million.
Tertiary and KoBold will each make an initial USD30,000 payment to Mwashia, although Tertiary's payment is already due under an existing agreement.
"The signing of the EIA is an important development for the company and we are delighted to team up with KoBold Metals for this exciting project," said Tertiary's Executive Chair Patrick Cheetham. "Konkola West is located in one of Zambia's major copper mining areas where Vedanta has recently committed to invest over USD1 billion in revamping the adjacent Konkola copper mine.
"KoBold will bring a strong technical team and financing to the Konkola West project."
By Emma Curzon, Alliance News reporter
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