Reward Minerals announced the execution of a farm-in and joint venture agreement with Fortescue Metals Group for the McKay Range.
Sulfate of potash (SOP) company Reward Minerals (ASX:RWD) announced the execution of a farm-in and joint venture agreement with Fortescue Metals Group (ASX:FMG,OTCQX:FSUMF) for the McKay Range.
The agreement is for tenements held by Holocene, a subsidiary of Reward. They are located north of Lake Disappointment in Western Australia.
As quoted in the press release:
Reward, via Holocene, will retain all rights to evaporite minerals such as potassium and magnesium on the Tenements (“Potash Rights”).
In addition, Reward’s rights in relation to the Lake Disappointment SOP Project’s infrastructure requirements are protected under the agreement.
Fortescue, who will be the operator of the Farm-in and Joint Venture, has the right to earn an 80% joint venture interest (“JV interest”) in the Tenements by spending $2 million over four years, with a minimum expenditure obligation of $400,000. Once the $2 million has been spent, a Joint Venture will be established after which both parties will either contribute to expenditure in accordance with the respective JV interests or dilute.