Critical Minerals Group (CMG) has announced that its subsidiary, CMG1, has executed a non-binding term sheet with True North Copper (TNC), under which TNC may farm-in to two of CMG1’s exploration permits in Queensland.
The key terms of the Term Sheet are as follows:
- TNC may acquire a 75 per cent interest in EPM 27998 (forming the Figtree Creek Project) and EPM 27999 (forming the Lorena Surrounds Project), both located in Mount Isa, Queensland
- To earn the option to acquire a 75 per cent interest in the tenements, TNC must incur at least $750,000 of expenditure in carrying out various farm-in activities over a three-year period. The specific activities to be carried out will be agreed in due course
- If TNC meets the expenditure requirement and elects to exercise its option:
- CMG1 and TNC intend to form an unincorporated joint venture in respect of the tenements (and associated assets), with TNC to manage the joint venture
- CMG1 will be granted a 3 per cent net smelter royalty in respect of production from the tenements
- TNC will be taken to have withdrawn from the farm-in arrangement if the minimum expenditure condition has not been achieved, and TNC may withdraw from the arrangement at any time. In each case, the farm-in arrangement will terminate
CMG said that it will work together with TNC to finalise the terms of the formal binding farm-in, joint venture and royalty agreements (which will contain customary terms for agreements of that nature) and a further announcement will be made once those documents have been executed.
CMG CEO, Scott Winter, said that CMG is pleased to announce its plans to work with True North Copper, a strategic partner well equipped to maximise the value of CMG’s non-core assets.