24 Sep Encounter Resources partners with BHP at Northern Australian copper project
ASX-listed junior explorer Encounter Resources has received endorsement for its Elliott copper project in Australia’s Northern Territory from BHP, with the two companies forming a joint venture (JV).
Mining giant BHP can earn up to 75% interest in the project by funding US$16 million over 10 years, according to the terms of the JV.
Both companies will complete the initial validation of the Elliot project, located at a major structural intersection south-west of the Beetaloo Basin, by the end of December.
Following the completion of the initial validation, BHP may elect to fund additional programmes throughout 2021 and decide whether to enter the JV agreement.
“We are delighted to be teaming up with BHP in the search for Tier 1 copper deposits at Elliott,” said Encounter managing director Will Robinson.
“We look forward to working alongside the highly respected BHP exploration team to validate this compelling opportunity.”
Robinson added that new data had shown potential for copper to be found under shallow cover in the Northern Territory, with Encounter moving ‘early and aggressively’ to secure first mover opportunities.