Argonaut Resources has increased ownership to 90% at its flagship Lumwana West copper project Zambia.
Argonaut was able to increase its ownership in the project by completing US$2.4 million in exploration expenditure under phase two of the underlying Lumwana West joint venture agreement and by making a payment of US$1.1 million to the initial Mwombezhi Resources shareholders.
The agreement covers all phases of the Project’s development from regional exploration to the completion of a feasibility study. In the event the Project continues to move forward and Argonaut elects not to fund its pro-rata share of construction expenses, it will be either carried into production or bought-out at the value of its interest.
“The acquisition of a 90% interest in the Lumwana West project is a significant milestone for Argonaut. The Company has completed this earn-in well ahead of schedule despite tough market conditions. This reflects the Company’s commitment to realising the value of Lumwana West. This rapid progress is a direct result of effective and well considered exploration which has defined the first major deposit as well as massive copper potential within the Project area,” said Argonaut director Lindsay Owler.
“Argonaut’s 90% interest provides the headroom required for the new overlying earn-in by Antofagasta. The Project is now fully funded and on a development timeline which, subject only to continued technical success, will see the Project’s value increase exponentially.”
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