Octava Minerals (ASX:OCT) has entered into a Farm in Joint Venture Agreement with Future Metals (ASX:FME) over the East Kimberley Project.
The East Kimberley Project comprises two granted tenements, Panton North and Copernicus North located in the Halls Creek Orogen, a Tier 1 nickel sulphide-PGM province.
Future Metals may earn a 70% interest in both the Panton North and Copernicus Projects by sole funding $2.0 million over 4 years, with minimum annual cumulative expenditure.
Octava will be free-carried through to a decision to mine.
Future Metals has the right to apply for a mining lease over a portion of exploration lease for use as part of the development of its adjoining 100% owned Panton PGM-Ni Project.
Octava will also receive approximately $600,000 in Future Metals shares.
The agreement is subject to the completion of financial, legal and technical due diligence by Future Metals, obtaining all necessary shareholder and regulatory approvals required to lawfully complete the matters set out in the farm-in agreement, Future Metals issuing Octava (or its nominee) the upfront consideration, and Octava delivering to Future Metals an executed escrow agreement for the upfront consideration shares.
The joint venture agreement includes customary pre-emptive, drag along and tag along rights.
Octava will be reallocating exploration funds originally planned for the Kimberley Project, the majority to the Talga Project with a small increase in expenditure to the Yallalong Project.