Subiaco-based Summit Resources Ltd has entered into an agreement with unlisted UK company MM Mining Plc for the farm out of 80 per cent of Summit's interest in a number of tenements in North-West Queensland.
These properties are not considered important to Summit's primary uranium exploration and development program, however Summit will retain the right to continue to explore for uranium deposits on these tenements.
The joint venture includes Summit's Isa South, May Downs and Mt Kelly base metals projects and the Constance Range iron ore and phosphate project.
A project map and list of tenements is included with this announcement. Summit will retain a 20% interest in these
projects and will be free carried through to any decision to mine.
To earn its interest, MM Mining Plc (who will be the Manager) must spend $10 million within the next 2 years.
In return, Summit will receive A$9 million being: A$2 million within 30 days or upon receipt of the approval of the assignment required under section 151(4)(a) of the Mineral Resources Act (Qld)1989, whichever is the
later; A$3 million within 6 months or upon MM Mining Plc listing on a stock exchange, whichever is the sooner; and
A$4 million within 18 months or within 12 months of MM Mining Plc listing on a Stock Exchange, whichever is the sooner.
Over recent years, the focus of Summit has shifted to its uranium projects to the point that these projects have assumed overwhelming significance.
The company said MM Mining Plc chief executive Peter Rolley had considerable experience with the Mt Isa non-uranium properties and it was confident that these projects would be competently pursued under MM Mining Plc.
This joint venture will position Summit to focus its management time, in partnership with Paladin Resources Limited,on its very exciting uranium projects.
