27 February 2008
HIGHLIGHTS
Joint Venture Agreement signed with Western Desert
Resources for portfolio of non-core exploration projects.
Agreements cover 100% owned Rover, Goddard and Musgrave
Prospects.
• WDR to spend $4M to earn an 80% interest.
TNG Limited (ASX: TNG) (“TNG”) is pleased to advise that it has reached
agreement with ASX-listed exploration company, Western Desert Resources
(ASX: WDR) (“WDR”), to joint venture a portfolio of non-core mineral
exploration projects in the Northern Territory.
Under the agreement, WDR subsidiaries can earn up to an 80% interest in
the Rover, Goddard and Musgrave Prospects by funding exploration
expenditure totaling A$4 million across the project group.
In addition TNG will not be required to make any further financial
contributions in respect of its interest in each of the Prospects until the
successful completion of a Bankable Feasibility Study.
The agreement is consistent with TNG’s focus on its core asset, the 100%-
owned Manbarrum Zinc-Lead-Silver Project in the Northern Territory of
Australia, where it completed a major exploration program in 2007 and is
currently working on an updated resource estimate.
The three projects subject to the joint venture agreement are prospective for
copper, copper-gold, nickel and uranium.
$4M JOINT VENTURE OF ROVER, GODDARDS AND
MUSGRAVE TENEMENTS
The Rover Project encompasses a 1,254km2 ground package in the Tennant
Creek region of the Northern Territory, the Musgrave Project covers a large
tract of ground on the south-east margin of the Musgrave Block and the
Goddards Prospect (also known as Tanami East) hosts significant malachite
mineralization.
It is envisaged at this stage that each of the Rover, Goddards and Musgrave
Prospects will be subject to joint venture arrangements. A summary of the
expenditure required and the earn-in profile is set out below:
Prospect Expenditure
to earn 51%
Expenditure
to earn
further 29%
TOTAL
Rover 500,000 850,000 1,350,000
Goddards 250,000 400,000 650,000
Musgrave 750,000 1,250,000 2,000,000
Total $1,500,000 $2,500,000 $4,000,000
Certain time periods have been set for WDR to earn in to the prospects. To
earn the initial 51% interest, WDR must spend the amounts above for the
respective prospects within 18 months of date of grant of the tenements, at
which point a Joint Venture arrangement will come into existence. WDR then
has a further 30 months from date of incorporation of the Joint Venture to
spend the tabulated amounts to earn up to an 80% interest in the
tenements.
TNG believes this is a positive outcome to leverage value from these
tenement prospects, with the Company retaining exposure to future
exploration success while maintaining its focus on the Manbarrum Project.
Yours faithfully
TNG Limited
Neil G Biddle
Managing Director
