Vancouver-based Serengeti Resources Inc. (TSX-V: SIR) has entered into an option agreement with Xstrata Copper Canada, a business unit of Xstrata Canada Corp., to explore a number of Serengeti’s Quest JV properties held in a joint venture with Fjordland Exploration Inc. (TSX-V: FEX).
Xstrata is a global diversified mining group headquartered in Zug, Switzerland.
The agreement will provide Xstrata the right to earn an initial 51% interest in the properties by funding $5 million in exploration costs and making optional payments, totalling $325,000, to the venture over four years, totalling $325,000.
Six properties located in the Quesnel Trough porphyry belt near Prince George are subject to this exploration agreement. All properties are considered viable copper-gold prospects as a result of previous exploration expenditures by the joint venture.
"Our existing Quest joint venture partnership is extremely pleased to have Xstrata Copper join us in advancing these high quality porphyry prospects,” said David Moore, president and CEO of Serengeti. “This agreement should result in these properties being aggressively explored in the near term.
“This is Serengeti's third agreement with a major mining company in the Quesnel Trough and is consistent with our goal of attracting partnerships to leverage our early-mover advantage in this favourable belt.”
Jennifer Harrison
Twitter: JHarrisonBIV