Australia-based mineral exploration company Trafford Resources Limited has announced that it has signed an agreement with Australia's Independence Group NL. The agreement allows Trafford to enter into a joint venture for a maximum 80 percent of the iron ore rights in two iron ore projects, namely Twin Peaks and Moorarie, in the Mid-West region of Western Australia.
To earn 80 percent of the iron ore rights, Trafford should complete 5,000 meters of drilling within 12 months. Trafford may earn 51 percent of the iron ore rights by spending A$2 million over two years, while it has to pay a further A$3 million for an additional 29 percent in the project.
Once Trafford earns 80 percent in the project, Independence will have the option to contribute to the joint venture or convert its remaining 20 percent equity to a 1.5 percent gross revenue royalty on all iron ore produced from the joint venture projects.