Star Mountain rights transferred

Business

THE Highlands Pacific Ltd is transferring the management of the Star Mountains exploration project in Western to its joint venture partner Anglo American plc.
This follows the payment by Anglo American of the required project expenditure of US$25 million (K77.7 million).
Under the joint venture agreement executed in February 2015, Anglo American acquired the rights to an initial 51 per cent interest in the Star Mountains project by paying Highlands US$10 million (K31 million).
According to Highlands Pacific, that 51 per cent ownership interest was then to be earned in phases – with 15 per cent vesting upon a farm-in spend of US$25 million (K77.7 million) within the first four years, and the remaining 36 per cent vesting upon the declaration of an NI43-101/JORC compliant inferred resource of three million tonnes of contained copper equivalent within five years.
The first hurdle of US$25 million  (K77.7 million) in project expenditure had been achieved thereby earning Anglo American its first 15 per cent ownership interest. It also triggers the transfer of project management to Anglo American.
Highlands chief executive Craig Lennon said he was pleased to see the exploration programme proceeding as envisaged in the original agreement.
“We have an excellent relationship with Anglo American, and welcome its ongoing commitment to the exciting Star Mountains project,” he said.
“Exploration is advancing steadily and drilling results continue to suggest the tenements may host a large copper porphyry that could ultimately underpin a significant copper and gold mining project.”
A number of extensive drilling campaigns have been completed at Star Mountains over recent years.
The current campaign, funded by Anglo American, commenced last October. Five holes have now been completed in this campaign with additional holes to be drilled by the end of this month.
Anglo American can move to an 80 per cent interest in the joint venture by completing a bankable feasibility study by 2030.
In December 2014, Highlands and Anglo American Plc (Anglo American) announced that they were forming a joint venture to undertake exploration and potential development of the Star Mountains project.
The Star Mountains region had only been drilled twice in the last 50 years. The first drilling was conducted by Kennecott in the late 1960s when Mt Fubilan deposit in Western was discovered, and subsequently mined by Ok Tedi Mining Limited. Highlands undertook a drilling campaign for three years from 2010 where 28 diamond drill holes were drilled over six prospects which produced some major intersections of copper gold porphyry mineralisation.