Trillion options Karasberg

Vancouver-based Consolidated Trillion Resources (TLQ-T) has secured rights to earn up to a 100% interest in the Karasberg project from a unit of BHP (BHP-N).

Karasberg consists of five exclusive prospecting licences totalling 4,305 sq. km in southern Namibia. Previous work by BHP identified copper-nickel-PGE (platinum group elements) soil anomalies and a bedrock conductor within a large ultramafic system. This target is at the drill-ready stage.

The agreement is subject to final approvals from the government of Namibia, as well as a 2.5% net smelter return royalty payable to BHP from any commercial production. Also, once Trillion completes its first phase of drilling, BHP can elect to retain a 70% interest by paying 2.5 times the junior’s costs. Trillion would then be carried to 30% upon completion of a feasibility study.

Should BHP elect not to exercise its option, Trillion can proceed to a second-phase program of $1.5 million over four years. Once this work is completed, BHP has another opportunity to obtain a 70% interest, by paying Trillion 2.5 times expenditures.

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