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Two companies join forces to advance Yeneena project

Western Australian explorer Encounter Resources has welcomed a new partner and major shareholder to help advance its Yeneena copper-cobalt project in the state’s Paterson province.

The company today announced fellow Australian mineral explorer Independence Group has subscribed for a placement of 24 million ordinary shares at a premium price of $0.075 to raise $1.8 million.

Encounter said at least 80% of the funds will be used to progress the Yeneena project, with a technical committee forming to equal represent Encounter and Independence in the design of exploration activities.

As a new major shareholder, Independence also has until March 2020 to elect to enter an earn-in agreement, under which it can earn up to 70% interest in Yeneena by spending $15 million over seven years. The company may also elect to manage the project during this earn-in period.

Upon completing the earn-in, a 70/30 joint venture will be formed, with each company contributing funds based on their respective interests.

Encounter managing director Will Robinson described Independence as a “highly successful” and “highly respected” exploration and mining company. Read more…

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