Perth based exploration company Laconia Resources Limited (LCR) is pleased to announce that it has entered into a $7.5 million Joint Venture (JV) Agreement with Chinese syndicate, Sinoz Mining Investment Group Pty Ltd, for the exploration and development of its Mooletar Iron Ore Project, near Mt Magnet in the Mid West iron ore precinct of Western Australia. Under the Joint Venture Agreement, Sinoz will invest $7.5 million within 24 months, over three stages – Stage 1: An initial $1 million to fund an exploration program at the Mooletar Project; Stage 2: A further $1.5 million, which will give Sinoz a 50% interest in the JV; Stage 3: A further $5 million, which will give Sinoz an 80% interest in the JV.
Laconia is delighted to have entered into the JV Agreement and views it as a significant validation of the Mooletar Project’s development potential. Sinoz is a Chinese syndicate led by the Zhejiang Changhong Steel Pty Ltd steel manufacturing company and the Lishui Chengxiang Mining Pty Ltd mining company, as well as Sydney-based property development group Austino Holdings Pty Ltd. Sinoz will provide the initial $1 million within one month of obtaining approval for establishment of the JV, and Laconia will undertake an RC drilling program of a minimum of 20 holes for 2,500 metres. Laconia will also receive a payment of $250,000 of the initial $1 million investment as partial reimbursement for expenditure on the project to date. After the completion of Stage 2 (the expenditure of $2.5 million in aggregate), in 12-18 months, Laconia will aim to deliver a JORC Code Inferred Resource for the Mooletar Project. Sinoz will then invest the remaining $5 million into the JV, within 12-24 months of executing the JV Agreement. These funds will be used for further exploration at Mooletar, to deliver a JORC Code Indicated Resource and seek a Mining Licence for the project. Laconia will manage the exploration at the project and hold a 20% free carried interest in the project up until a decision to mine is reached. The JV will pertain solely to iron ore rights at the Mooletar Project, and Laconia will retain the mineral rights to gold and all other minerals.
Laconia Resources is a Perth-based advanced exploration company, with interests in iron ore, gold and base metals. The Company has a portfolio of advanced gold and base metals projects near Kalgoorlie and in the Murchison and Pilbara regions in Western Australia, across 35 granted tenements covering an approximate 955km2. Sinoz Mining Investment Group is a Chinese syndicate which has interests and expertise in mining, steel making and investment. It is led by the Zhejiang Changhong Steel Pty Ltd steel manufacturing company and the Lishui Chengxiang Mining Pty Ltd mining company, as well as Sydney-based property development and investment group Austino Holdings Pty Ltd. It seeks to develop mutually beneficial partnerships and joint venture arrangements with natural resources-based companies to assist the development of these companies projects.
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