Monax Mining has started a gravity survey at its Algebuckina Designated Project in northern South Australia as part of its alliance with Chilean copper producer Antofagasta. The gravity survey will take about two weeks to complete with drilling planned for the Q3 2013.
Algebuckina comprises five tenements covering an area totalling 2,663km2. These are held by Monax’s wholly owned subsidiary Monax Alliance which was established as the operational vehicle for its alliance with Antofagasta.
The Chilean company is providing USD 1M to Monax Alliance over two years for target generation within South Australia. Any initial properties that are identified as a project of interest become a Designated Project that Antofagasta will have a 51% interest in while Monax holds the remaining 49%.
Antofagasta will then have the option to earn an additional 19% of any DP by spending a further USD 4M on exploration within three years and upon earning this interest it will subsequently be required to make an additional cash payment to Monax of USD 3M.