Shareholder Update 7th April 2021
Black Tiger Resources LTD. and Oz Exploration PTY. LTD. Sign New Heads of Agreement
On 7th April 2021 Black Tiger Resources (BTR) entered into a binding Heads of Agreement (HoA) with OZ Exploration Pty Ltd (OZ Minerals) for a new Farm-in to Joint Venture on BTR’s flagship Pandurra Project located in the southern margin of the Gawler Craton in South Australia.
Exploration under this new HoA targets Iron Oxide Copper Gold (IOCG) mineralisation similar to that seen at OZ Minerals’ Carrapateena and Prominent Hill copper mines, and BHP’s Olympic Dam mine. The Pandurra Project is located 150 kilometres south-west of OZ Minerals’ Carrapateena mine.
The basis of the agreement, following BTR and OZ Minerals satisfying the agreed pre-conditions, is sequential exploration stages, where OZ Minerals has the option to withdraw at any time but can elect to progress at the end of each stage completion, as follows:
- Initial Period: OZ Minerals to sole fund project expenditure of $0.5 million within 1 year of BTR satisfying the pre-conditions;
- Stage 1 Period: OZ Minerals can elect to sole fund additional project expenditure to a total of $3.0 million overall within 2 years after the Initial Period, to earn the option to elect to form a joint venture with a 51% JV interest;
- Stage 2 Period: OZ Minerals can elect to sole fund additional project expenditure of $5.0 million within 2 years after JV formation, to earn a further 24% JV interest for a total 75% JV interest, or OZ Minerals can elect to remain at 51% JV interest;
- OZ Minerals and BTR participate in a Joint Venture and contribute funding in the proportions of the respective % JV interests as appropriate, with the objective of developing the project to inform a decision to mine.
The Geological Survey of South Australia (GSSA) collect, manage and deliver information and knowledge of South Australia’s geology, particularly for its mineral resources prospectivity. In 2020, GSSA facilitated an open data competition called the “Gawler Challenge”. The winning entry in the competition was the “PEROZ” submission. The PEROZ submission methodology “utilised a data-driven methodology (machine learning) that systematically tests for the relative importance of a large number of geological factors on known deposits….” and produced a map of the most prospective targets in the Gawler Challenge area. The third most prospective target area identified by PEROZ, including two specific targets are to be explored under this new HoA, within a defined western portion of the Pandurra Project.