Investigator Resources (ASX:IVR) entered into earn-in heads of agreement with unlisted mining firm Alliance Resources, through Alliance's wholly-owned subsidiary Alliance (Eyre), over the Black Hill tenement, which is adjacent to the company's Peterlumbo tenement containing the Paris silver project in South Australia, according to a Monday Australian bourse filing.
The tenement has historic high-grade silver drill intersections at the Sunday Iron prospect, although historically reported silver occurrences within the tenement have not been followed up since their initial discovery.
Investigator Resources will undertake a tenement-wide review of prospective targets before initial drill testing. Under the earn-in heads of agreement, it must spend AU$500,000 on in-ground exploration over two years before entering stage two.
In the second stage, it must expend a further AU$500,000 over a further one year to earn a 49% interest in a planned joint venture with Alliance. Investigator will issue AU$500,000 worth of its shares on the formation of the joint venture.
In the third stage, Investigator will be solely responsible for funding all expenditure and development until the joint venture is awarded a mining or retention lease. Upon receiving the lease, Investogator's stake in the venture will increase to 80%.
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