Tertiary Minerals has signed a new joint venture agreement with local partner Mwashia Resources, which will consolidate ownership of the Jacks, Mukai, and Mushima North exploration licences into a new Zambian company.
The new company will be 90% owned by Tertiary’s 96%-owned subsidiary, Tertiary Minerals Zambia (TMZ), and 10% by Mwashia.
Mwashia currently holds all of the licenses.
“This joint venture agreement is a win-win for Tertiary and Mwashia and a further example of the excellent working relationship we have developed with our local partner, which enabled the recent agreement with KoBold Metals on the exciting Konkola West Project,” said Tertiary executive chairperson Patrick Cheetham.
Tertiary holds the right to a 90% joint venture interest in the Jacks licence and options to earn a 90% joint venture interest in each of the Mukai and Mushima North licences by meeting certain expenditures and making payments totalling $60,000 to Mwashia.
The joint venture agreement relieves Tertiary of the expenditure obligations due under its option agreements on the Mukai and Mushima North licences.
It also brings forward the $60,000 payment to Mwashia and puts ownership of the licences under a common entity controlled by TMZ.
Mwashia’s 10% interest will be carried by TMZ, with carried costs being recovered as a priority from future profits.
Mathew Nyaungwa, Editor in Chief of the African Bureau, Rough&Polished
