The Bushranger Copper Project comprises a single Exploration Licence (EL) 5574 located in New South Wales1 and is currently the subject of the Bushranger Exploration Farmin and Joint Venture Agreement, which was initially entered into by the Company’s wholly owned subsidiary, ORD Investments Pty Ltd (ORD Investments) and Newmont Exploration Pty Ltd (Newmont) dated on or around 30 September 2011 (FJVA)2.   Newmont’s entire interest in the FJVA was subsequently novated to Anglo American Exploration (Australia) Pty Ltd (Anglo American) pursuant to a Deed of Novation between Anglo American, Newmont and ORD Investments dated on or around 10 January 2014 (Deed of Novation).3

The initial interests of the participants in the joint venture, subsequent to the Deed of Novation, were:

  1. Anglo American: 51%; and
  2. ORD Investments Pty Ltd: 49%4.

The Company has since elected not to contribute to exploration expenditure on this Project and its interest in this Project has been diluted according to the terms of the FJVA.5

On 2 December 2015, ORD Investments was notified by Anglo American that, due to its failure to contribute, Anglo American had elected, in accordance with the terms of the FJVA, to dilute ORD Investment’s participating interest in the Project.  The dilution has taken ORD Investments’ participating to below the deemed withdrawal threshold contained in the FJVA (being a 10% participating interest).  Accordingly, the Company’s interest has now been converted into a 2% Net Smelter Royalty (Royalty).6

Given the early stages of exploration that has been undertaken in respect of the Bushranger Copper Project, the Company does not expect the Royalty to generate any income for the Company until such time as this Project is brought into production stage, which is unlikely to occur in the short term.7

  1. Refer to New South Wales Tenement Search conducted on 5 February 2018
  2. Refer to Farm in and JVA
  3. Refer to Deed of Novation dated 10 January 2014 between Newmont and Anglo American Exploration (Australia) Pty Ltd
  4. Refer to Farm in and JVA; Letter from Anglo American Exploration (Australia) Pty Ltd (Anglo) dated 2 December 2015 to Ord Investments (Royalty Letter)
  5. Refer to Royalty Letter
  6. Refer to Royalty Letter
  7. Directors’ Statement