BHP enters A$22 million farm-in agreement for Northern Territory copper project
Encounter Resources said on Friday that BHP exercised its option to enter into a farm-in and joint venture agreement covering the 4,500km Elliott Copper Project in the Northern Territory.
BHP may earn up to a 75% interest in Elliott by spending up to A$22 million (US$17.06 million) over 10 years.
Encounter Managing Director Will Robinson released a statement:
“Copper sourced from sedimentary-hosted deposits is one of the fastest growing sources of high grade copper in the world. Encounter controls an extensive first mover portfolio of copper projects in the Greater McArthur Superbasin in the NT. The potential for this region to host large sedimentary-hosted copper deposits is rapidly emerging and we are delighted to be teaming up with BHP to apply leading edge technologies in the search for Tier 1 copper deposits at Elliott.
"The outcomes of the jointly designed validation program at Elliott have been illuminating and bolstered the potential for the discovery of large sedimentary-hosted copper deposits under shallow cover in the NT.”
Majors are taking an interest in copper. On Monday Western Copper and Gold (TSX: WRN) (NYSE American: WRN) announced a C$25.6 million strategic investment by Rio Tinto Canada to advance the Yukon developer's Casino project.