Emerging South Australian uranium producer Boss Energy (ASX: BOE) has inked a deal whereby Canadian copper giant First Quantum Minerals (TSX: FM) can earn up to 75% of any base and precious metals development at its flagship Honeymoon project.
This enables Boss to remain solely focused on getting the mothballed Honeymoon uranium mine back into production.
But, just as importantly, it suggests that First Quantum thinks that there could be a substantial target on Boss’ ground.
Capitalised at US$25 billion, First Quantum operates eight mines across the world, in Mauritania, Finland, Panama, Turkey, Spain and Zambia as well as owning the Ravensthorpe nickel mine in Western Australia.
First Quantum to sole fund up to decision to mine
The agreement between the two companies allows First Quantum to earn a 51% interest in any base or precious metals discovery at Honeymoon by spending $6 million on exploration.
Then the Canadians can top up to 75% ownership by sole funding all spending to the decision-to-mine stage.
Boss managing director Duncan Craib described the deal as “outstanding”.
“We will have a global leader in [First Quantum] funding base and precious metals exploration at Honeymoon, giving Boss significant exposure to their success at no cost to us, while we focus on our goal of becoming Australia’s next uranium producer,” he added.
Honeymoon site located on prolific belt
Honeymoon is located just is located just 12km from the Kalkaroo copper-cobalt-gold deposit owned by Havilah Resources (ASX: HAV).
These lie within the southern portion of the Curnamona mineral province which extends over about 300sq km from northeast South Australia into western NSW.
Boss says the province is considered highly prospective for “numerous” mineral styles, including iron oxide copper gold, Zambia Copper Belt style copper and cobalt, and Broken Hill and Mt Isa style zinc-lead-silver mineralisation.
Kalkaroo is described as one of Australia’s largest undeveloped copper open-pit deposits, containing 1.1 million tonnes of copper, 3.1 million ounces of gold and 23,200 tonnes of cobalt.
Furthermore, 40km northeast of Honeymoon are located the Portia gold and North Portia copper-gold-molybdenum deposits.