- South32 (S32) says the Irish Government has signed off on its earn-in agreement with Canadian-listed company, Adventus Mining
- The deal advances Adventus’ Rathkeale, Kingscourt and Fermoy projects in Ireland’s Limerick Basin
- Additionally, the earn-in agreement gives South32’s subsidiary, South32 Base Metals, the right to acquire 70 per cent interest in the projects through exploration funding
- In exchange, South32 is set to provide EUR$3.5 million (A$5.9 million) in exploration funding over the next four years
- South32 shares are 2.43 per cent higher today, trading for $2.11 per share
South32 (S32) says the Irish Government has signed off on its earn-in exploration agreement with Adventus Mining Corporation.
South32’s Irish subsidiary South32 Base Metals Ireland will earn up to 70 per cent of the rights to Adventus’ Rathkeale, Kingscourt and Fermoy projects in Ireland’s Limerick Basin.
The projects are wholly owned by Adventus’ subsidiary, Adventus Zinc Ireland Limited. The projects consist of prospecting licenses covering an area of 1,100 square kilometres with zinc, lead and silver prospects.
The earn-in deal will allow South32 to acquire the stake, should they fund EUR$3.5 million (A$5.9 million) worth of exploration across the sites. The exploration work will be operated by Adventus Ireland during that time.
The companies signed a pre-approved joint venture agreement that will activate once that spend target has been reached by South32.
The deal was just ticked off by the Irish Minister of Communications, Climate Action and Environment.
South32 and Adventus have begun the planning work for the exploration program already, due to begin later in the year. An initial budget of $1.02 million has been set aside for the project.
South 32 is a relative newcomer to the stage, only spun out of BHP in 2015. The company focuses on base metals like Zinc, Copper, Manganese, Aluminium and Nickel.
This also represents South32’s first move into Ireland.
Adventus shares, however, are trading at their lowest point since in their history, with shares dipping as low as $0.52 per share last month.
Adventus Mining has largely shifted focus away from their Irish exploration leases, instead choosing to focus on the El Domo-Curipamba Project in Ecuador.
The company are themselves part of an earn-in agreement to obtain 75 per cent ownership of the Curipamba Project through exploration work on the Ecuadorian site.
South32 shares are 2.43 per cent higher today, trading for $2.11 per share at 2:20 pm AEST.