Estrella Resources Launches Joint Venture for Mining Timor-Leste

Estrella Resources Ltd (ASX:ESR) has incorporated a joint venture (JV)and royalty deed with Timor-Leste’s state-run Murak Rai Timor (MRT) to explore and mine in the region.

The newly formed Estrella Murak Rai Timor, is 70% owned by ESR and 30% MRT and will explore the three granted licenses which are ‘highly prospective’ for manganese, copper and gold.

Moving forward, proposals are well underway for trenching and drilling to assist in the quantification of the high-grade manganese material within the three licenses.

Agreement Summary

The JV will wholly own the previously granted exploration and evaluation licenses (EELs) – ZA001, ZA002 and ZA003, with a total landholding of 121.5 square kilometres.

Under the terms of the deed, the JV will see MRT free carried at 30% ownership up until the completion and publication of a feasibility study over a deposit located within each of the EELs.

In addition, ESR will be solely responsible for the funding requirements of the company until the completion and publication of a feasibility study.

Furthermore, MRT and ESR have entered into a royalty deed whereby MRT can elect to transfer its 30% interest in the JV to ESR following the completion of the feasibility study

In doing so, MRT will receive a 2% royalty on the Net Smelter Return (NSR) on all minerals produced from the area within the boundary of the EELs.

Next steps

Estrella managing director Chris Daws said: “The next steps now are for the JV company to get out on the ground and ramp up exploration across the three granted EEL with an initial focus along the highly prospective Noni Formation where thick manganese-rich bands have been uncovered just below the surface.

“Proposals are well underway for trenching and drilling to assist in the quantification of the high-grade manganese material and I look forward to updating the market on the JV’s progress within the EELs.”

 

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