Tertiary Minerals Zambia (TMZ) and Mwashia Resources have inked a joint venture deal that will see the two work together in exploration of Jacks copper project.
The full joint venture and shareholders’ agreement was made pursuant to the option agreement between TMZ, formerly Luangwa Minerals, and Mwashia, announced on August 2 last year. According to deal, the two will form a new Zambian company dubbed Newco. Tertiary Minerals Zambia (TMZ) will have majority of the shares (90%) while 10% by Mwashia to own and operate the Jacks project.
Tertiary Minerals Zambia (TMZ) which is Tertiary Minerals’ Zambian subsidiary will fund Newco. They also have an option to buy Mwashia’s 10% interest for the amount of $3.5-million. Meanwhile, a payment of $30 000 will now be made by Tertiary to Mwashia as required by the option agreement.
Jacks Prospect
“This joint venture cements our relationship with Mwashia and provides a mechanism for TMZ to move to 100% ownership of the Jacks licence in future. Since signing the option agreement, we have worked closely with Mwashia as our local partner. Mwashia has been instrumental in the tribal and stakeholder engagement process that has allowed for the smooth running of our drilling programme at Jacks earlier this year and, more recently, for the soil sampling programme where we expect to release provisional results shortly. We anticipate this new agreement will form a template for those licences, should TMZ compete its expenditure requirements under the terms of those options,” Tertiary executive chairperson Patrick Cheetham said.
The Jacks Prospect lies within Exploration Licence 27069-HQ-LEL which covers 141.4 km2 and is located 85 km south of Luanshya in Zambia. The geological setting of the exploration licence area is a synclinal embayment of Lower Roan Group sedimentary rocks which unconformably overlies basement rocks of the Muva Formation. The Lower Roan Group is highly prospective and hosts the majority of significant copper deposits in the Zambian portion of the Central African Copperbelt.
