TNG Limited (TNG) is pleased to announce that it has signed a Heads of Agreement with Australian uranium exploration and project development company, Toro Energy Limited (TOE), providing TNG with the right to explore for all minerals except uranium within Toro Energy’s EL 27115, EL 26848 and EL 27876 tenements. The tenements lie immediately west of TNG’s flagship Mount Peake Strategic Metals Project in the Northern Territory and are considered to be highly prospective for copper and nickel mineralisation based on previous exploration results. The HOA will be known as the Walabanba Hills Project.
Under the terms of the HOA, TNG must spend a total of A$500,000 on exploration activities within the first two years to earn a 51% interest in each of granted Exploration Licences (EL’s) 27115, 26848 and 27876, at which point a formal Joint Venture agreement between TNG and Toro will be signed, subject to meeting conditions precedent. TNG then has the right to increase its stake to 80% by spending a further A$1.5 million over the next five years. Toro can then elect to retain, assign or convert its remaining 20% interest to a 2% Net Smelter Royalty (NSR).
TNG’s Managing Director, Mr Paul Burton, said the new tenements were an exciting and highly prospective addition to the Company’s copper exploration portfolio and strategy in the Northern Territory.