Mining Weekly reported that IMX Resources Ltd. (TSX:IXR,ASX:IXR) has agreed to a farm-in agreement with MMG Exploration Holdings Ltd. for its Nachingwea project, which includes the Tanzania-based Ntaka Hill nickel sulphide deposit. The deal is worth $60 million.

As quoted in the market news:

The earn-in period between IMX and MMG would stretch over five years and would be structured over three stages.

In the first stage, MMG would sole-fund some $10-million on exploration over the next 12 months, to earn its first 15% stake in the joint venture (JV).

MMG could then elect to sole-fund a further $25-million within a further 18-month period, to increase its JV interest to 40%.

Over the Stage 3 earn-in, MMG could elect to sole-fund a further $25-million within a further 30 months, increasing its stake in the JV to 60%.

MMG would become the manager of the JV and would initially focus on deep drilling at the Ntaka Hill prospect, while accelerating assessment of the regional setting.

Click here to read the full Mining Weekly report.