Magma Metals Limited CA has entered into a heads of agreement for a farm in JV with Poseidon Nickel Limited, whereby Poseidon can earn an initial 60% interest in Magma’s Laverton nickel project in Western Australia. As per the terms of the agreement Poseidon may earn a 60% interest in the nickel copper platinum group metals rights held by Magma by spending USD 3 million within 3 years on the Laverton project tenements; following the earn in, Magma may elect to contribute to JV expenditure to maintain its 40% interest or convert it to a 20% free carried interest to a decision to mine; following a decision to mine on any project in the JV area, Magma may elect to contribute to a production JV to maintain its interest or convert that interest to a 2.5% net smelter returns royalty; Poseidon will have a first right to toll treatment or off take of any nickel, copper or PGM ore produced from the JV area. The agreement is subject to several conditions including completion of satisfactory due diligence by Poseidon and execution of a formal farm in and JV agreement. Poseidon is currently re-developing the close by Windarra nickel mine, and exploring the newly discovered Cerberus and South Windarra nickel deposits, which are both adjacent to Magma’s tenement boundaries.
