depth & trades aug 21, page-19

something to do with malaysian affluent deal that didnt come through.. correct me if i wrong.




Sipa Resources Ltd has secured Affluent Net Ltd as farm-in and joint venture partner for the Thaduna and Ilgarari copper projects in the Gascoyne region of Western Australia.

The western boundary of Thaduna is around 20kms east of Sandfire Resources NL’s DeGrussa-Conductor 1 copper-gold discovery.

The agreements are conditional upon Affluent depositing with Sipa $3 million for Thaduna and $2 million for Ilgarari, and approving the initial program and budget for each project within 90 days from signing.

At Thaduna, Affluent must spend $10 million over three years to earn a 49.9% interest in the 940sqkm Thaduna property and the four prospecting licences held by George Lee and John Flint which are surrounded by Sipa’s property. Affluent must reimburse Sipa $900,000 of past exploration expenditure and LF $100,000 million. Affluent must spend $2 million within 12 months before it can withdraw from the agreement. If Affluent wishes to continue after 12 months it must pay Sipa and LF 1.5% of the in-ground copper value of any JORC-compliant copper-bearing identified mineral resources, to be shared 90% Sipa and 10% LF.

At Ilgarari, Affluent must spend $5 million over a three-year period to earn a 49.9% interest in the 980sqkm property. Affluent must reimburse Sipa $500,000 for past exploration expenditure, and must spend $1.5 million within 12 months before it can withdraw. If Affluent earns the 49.99% interest it must free-carry Sipa for another $5 million of exploration expenditure.