Gold and copper explorer Torrens Mining Limited (ASX: TRN) today advised it had made a payment to Strandline Resources Limited (ASX:STA) due for the purchase of the Elizabeth Creek copper project, under the terms of the Sale Agreement between Torrens’ wholly-owned subsidiary Terrace Mining Pty Ltd (Terrace) and Strandline, signed on 15 December 2015.
The Elizabeth Creek Project in South Australia covers a strategic ground position located in the heart of the Olympic Copper Province, which is Australia’s most productive copper province, and surrounding the historical Mt Gunson copper mining centre.
The payment of $250,000 has been satisfied by the issue of 1,250,000 Torrens shares, calculated at Torrens’ IPO Offer price of 20 cents per share (Torrens listed on ASX on 7 January 2021).
Strandline retains a 2% net smelter royalty (NSR) up to a maximum of $1.25 million payable by Torrens to Strandline following commencement of production at Elizabeth Creek. Terrace holds the right to buy back Strandline’s royalty right for $750,000.
Subsequent to its 2015 acquisition of the Elizabeth Creek, Terrace entered into a Farmin Agreement, dated 17 March 2017, with Coda Minerals Limited (ASX:COD) (Coda). Under this agreement, as announced to ASX on 25 January 2021, Coda has earned a 70% interest in the Project by spending $6.62 million.
The respective ownership of the Project is now Torrens (via Terrace) 30% and Coda 70%. Coda holds the option to purchase a further 5% interest in the Project for a $1.5 million payment to Terrace.
Coda, as operator of the Elizabeth Creek Farm-in and Joint Venture, is presently free carrying Terrace for an additional $2 million, expected to be spent within the first half of 2021. At the end of the free-carry period, a joint venture will be formed and each of Terrace and Coda will have the right to contribute to joint venture expenditure pro-rata to their respective percentage interests.
As reported by Torrens and Coda in successive ASX releases, the exploration work at Elizabeth Creek is delivering an emerging, multi-faceted, copper-cobalt project, which includes the following attributes:
The exciting Emmie Bluff Copper-Cobalt Prospect.
Pending drilling results from recent drilling at Emmie Bluff.
Planned drilling for Iron-Oxide-Copper-Gold (IOCG) mineralisation in the underlying basement rocks at Elizabeth Creek, at the newly identified Elaine and Emmie Bluff prospects.
The JORC 2012 Indicated MG14 and Windabout Copper-Cobalt Resources containing 280,000 tonnes of CuEq.
Planned drilling of other Zambian-style, sedimentary-hosted, copper-cobalt mineralisation targets.
Torrens Managing Director Steve Shedden said:
“The Elizabeth Creek acquisition was one of the foundational pillars of Torrens paving the way for usto become an ASX-listed company in January this year.
“Torrens’ 30% interest in the Elizabeth Creek Copper Project, with its enormous upside, remains a core part of our asset portfolio.
“We look forward to impending value-adding developments, including the generation of a Mineral Resource estimate for the vast Emmie Bluff copper-cobalt deposit, and the drilling of two highly prospective IOCG targets.”