The Fowler Domain tenements straddle the boundary of the Folwer geological domain in far western South Australia.
The major crustal scale domain bounding structures that traverse the tenements have potential to host structurally upgraded magmatic Ni-Cr-Cu-PGE; layered intrusive-hosted NiCr-PGE; IOCG (Hiltaba Suite) deposits; intrusion-related (Tunkillia-type) Au; and orogenic Au.
Investigator made application for these tenements through a competitive bid process and was successfully granted Els 6603 and 6604 in mid-2021. Interest in this area was heightened following discoveries by Western Areas Limited (ASX:WSA), indicating the nickel-copper sulphide opportunities of the region.
With focus on advancing the Paris silver Project and other exploration opportunities to the east, in October 2021 Investigator entered into earn-in to joint venture agreement with Osmond Resources (ASX:OSM) over the 100% held Fowler Domain tenements.
Key terms of the earn-in agreement are:
Stage 1 Program
- Osmond to spend $750,000 over a period of 3 years to earn a right to a 51% interest in a Joint Venture or withdraw with no project interest earned; and
- If the minimum expenditure condition is met, the parties will enter into a formal Earn-In/Joint Venture Agreement and a 51% interest in the tenements will be transferred to Osmond (Osmond 51%, IVR 49%).
Stage 2 Program
- On satisfaction of the Stage 1 Earn-In/Joint Venture conditions, Osmond may elect to proceed with Stage 2 of the Earn-In.
- For expenditure of an additional $2M over a further 3-year period, Osmond will earn an additional 29% Joint Venture interest to a total of 80% (Osmond 80%, IVR 20%).
Future work programs
- Post completion of Stage 2, with Osmond having earned an 80% Joint Venture interest, Investigator’s 20% interest will be free carried through to completion of a Pre-Feasibility Study.
- On completion of a Pre-Feasibility Study, Investigator may elect to either fund further exploration and development costs on a pro-rata basis, or dilute. If Investigator’s Joint Venture interest dilutes to 5%, the interest will convert to a 1% net smelter return royalty.
As part of the transaction consideration, Osmond issued 1.1M shares to Investigator.