Sandfire buys out JV partner

Ventnor Resources has sold its stake in the Thaduna/Green Dragon copper project to joint venture partner Sandfire Resources.

Sandfire will pay an initial $2 million in shares to Ventnor to acquire the 65 per cent interest, plus a further $1 million if the Perth-based miner proceeds with a decision to mine at the project.

Ventnor will also receive a 2 per cent net smelter royalty under the terms of the deal.

Sandfire and Ventnor entered into the joint venture at the project in late 2013, with Sandfire paying $3 million to acquire an initial 35 per cent stake.

Thaduna/Green Dragon is located 40 kilometres east of Sandfire’s DeGrussa copper-gold mine near Meekatharra.

“This agreement with Sandfire allows Ventnor to maintain a positive position in the Thaduna/Green Dragon project and following sale of Sandfire shares, to inject funds into Ventnor to advance its prospects at the Black Dragon gold project,” Ventnor said in a statement.

Ventnor shares were 3.8 per cent higher to 2.7 cents each, while Sandfire shares were 0.3 per cent lower to $5.50 each, at the close of trade.