Trafford signs major JV with Minotaur

Trafford Resources has entered into a joint venture agreement with Minotaur....

  Trafford Resources has entered into a joint venture agreement with Minotaur Exploration subsidiary, Minotaur Operations Pty Ltd, covering 2,492sqkm of prospective ground to the east and west of the Trafford’s existing tenements at Wilcherry Hill.Trafford said the company believes the abundance of mineralisation evident throughout it’s Wilcherry Hill project area, comprising iron, copper, gold, uranium, lead and zinc, is related to it’s geological location at the southern limit of the Gawler Range Volcanics. Much of the Minotaur joint venture ground covers extensive areas within this highly prospective zone. Under the terms of the joint venture agreement, Trafford may earn a 51 percent interest by spending $2.5m within three years over the five tenements. Upon earning 51 percent, Trafford may elect to earn a total of 70 percent by spending a further $2.5m over the following two years. Upon Trafford earning 70 percent, Minotaur may elect to contribute prorata or convert to a 10 percent interest, free carried to decision to mine. Trafford has a minimum obligation to spend $0.5m within 12 months, prior to withdrawal. If Trafford withdraws before earning 51 percent, the tenements will be returned, unencumbered, to Minotaur. Exploration for uranium by Trafford is excluded on three of the Exploration Licences where Toro Energy has the exploration mining and processing rights for that commodity under its Tenement Access Agreement with Minotaur.