On 17 September 2013, CYU entered into a binding term sheet to create a joint venture with Altona Mining Limited (Altona) to explore for copper and gold and ultimately earn a majority interest in the Roseby South Project, near Mt Isa in Queensland.
Roseby South comprises a package of eight Exploration Permits covering an area of 704km2 situated near Cloncurry in the world-class Mt Isa Inlier in north-west Queensland. Set out in the figure 2 is a diagram showing the location of the Roseby South tenures, as they relate to CYU’s other project interests in the region.
The terms of the earn-in joint venture between CYU and Altona are:
Once CYU earns its 60% interest, (and subject to CYU making an election to sole fund a feasibility study to go to 70%), an unincorporated joint venture will be formed between CYU and Altona with each party then obliged to contribute to ongoing project development or dilute according to an agreed formula and work program.
Roseby South is situated near Cloncurry in the world-class Mt Isa Inlier, a significant gold and base metal producing region, host to major copper/gold and lead/silver/zinc deposits. The district has established mining, processing and transportation infrastructure in close proximity to the regional centres of Mt Isa and Cloncurry.