The Springfield Joint Venture Projects are located approximately 150km north-east of Meekatharra in the northern Murchison Goldfields region of Western Australia.
The Springfield Joint Venture consists of 2 projects – Springfield (30%) and Halloween West (27%) – all of which are prospective for VMS-style copper-gold mineralisation. The tenements are located immediately adjacent to Sandfire Resources’ DeGrussa Copper-Gold Project, which is one of the Asia-Pacific region’s premier, high-grade copper mines.
The strength, size and grade of the DeGrussa Volcanogenic Massive Sulphide (VMS) system support Talisman’s view that the exploration potential of the Company’s Doolgunna projects –particularly the Springfield Project which is located just 4km to the east of the DeGrussa deposits – is very high.
Both Sandfire and Talisman are party to an Exploration Joint Venture Agreement, which Talisman holds a 30 per cent contributing interest in the Doolgunna Projects (including the Springfield Project) with Sandfire holding a 70 per cent interest and managing the Joint Venture.
The EJVA replaces the Farm-In Letter Agreement to cover the ongoing exploration activities of the Joint Venture on the Joint Venture tenements and outlines the rights and obligations of the Joint Venture parties. In addition, it provides a mechanism to progress future mineral discoveries, including the pathway for utilising the existing MJVA or entering into a new Mining Joint Venture Agreement.
The MJVA establishes the rights and obligations of the Joint Venture parties relating to activities associated with the development, mining and ultimate decommissioning of mineral discoveries. The development and mining of Monty will operate under the terms of this MJVA.
An Ore Sale and Purchase Agreement (OSPA) has been executed between Talisman and Sandfire with Talisman’s share of the ore mined from Monty – and any mineralised extensions to the Monty deposit – to be sold to Sandfire for subsequent treatment at Sandfire’s nearby DeGrussa plant, allowing Talisman to benefit from the established infrastructure. Further economic discoveries made within the broader Joint Venture area will be subject to a new OSPA at the discretion of the Joint Venture parties and negotiated at that time. A Mining Joint Venture Agreement (MJVA) and an Exploration Joint Venture Agreement (EJVA) have also been executed between Talisman and Sandfire for the Joint Venture (collectively Joint Venture Agreements).
The OSPA provides for the sale of Talisman’s share of Monty ore to Sandfire at the point of delivery, being a dedicated weighbridge near the ROM ore pad at the DeGrussa plant.has two projects in its Doolgunna portfolio – the Springfield and Halloween West JV projects – all of which are prospective for VMS-style copper-gold mineralisation. The tenements are located immediately adjacent to Sandfire Resources’ DeGrussa Copper-Gold Project, which is one of the Asia-Pacific region’s premier, high-grade copper mines.
Talisman has executed a Facility Agreement with Taurus Mining Finance Fund (Taurus). The Facility Agreement enables Talisman to fully fund its A$22 million share of forecast pre-production capital costs for the development of the Monty Copper-Gold Project (Monty or the Project).
Key terms of the PFF are contained in Talisman’s ASX release of 30 October 2017 and include:
- Facilty amount of US$20 million.
- Interest rate of 6.75% per annum payable quartley in arrears.
- Facilty repayable by 30 September 2020.
- A royalty of 2.25% of Talisman's gross payable copper and gold metal-in-ore sales recepits from Monty. The obligation to pay the royalty ceases once Talisman has received revenue from Monty sales continuing 29,7000 tonnes of copper and 16,500 ounces of gold.
No Mandatory copper of gold hedging requirements.