$36m WMP JV with OZ Minerals


In October 2016 Cassini Resources Limited executed a Joint Venture Agreement with leading Australian resources company OZ Minerals Limited (ASX:OZL) to fast track development of the Company’s West Musgrave Project (WMP) located in Western Australia. The West Musgrave Project encompasses the Nebo-Babel nickel and copper sulphide deposit, together with the Succoth copper deposit.

Under the agreement, OZL has been granted the right to farm-in to the West Musgrave Project by sole funding a minimum of $36 million of development and exploration expenditure, including completion of a Definitive Feasibility Study (DFS), for a 70% interest in the Project. The agreement includes a minimum $28m funding for continued studies on Nebo-Babel to progress it to a “Decision to Mine”, as well as a minimum regional exploration spend of $8 million to assist in identifying additional value adding opportunities.

Should OZ Minerals complete their obligations to earn a 70% joint venture interest, Cassini will have the right to maintain its 30% interest by contributing to ongoing expenditure on a pro rata basis or dilute under standard industry terms.

Importantly, Cassini will remain as the operator of the Project until the end of the Prefeasibility Study stage.

The JV will fund the continued development and exploration of the WMP, and provides a clear pathway to a decision to mine and potential cash flow for Cassini.







Initial minimum commitment

- $3m Further Scoping Study; plus
- Provision of two full time OZ Minerals technical staff

0% Up to 12 months
Stage 1

- $15m expenditure towards PFS/DFS; plus
- $4m regional exploration

51% Up to 18 months
Stage 2

- $10m expenditure towards DFS; plus
- $4m regional exploration

70% Up to 12 months

- $36m on project development; plus
- Provision of two full time OZ Minerals technical staff



Since acquiring the WMP in 2014, Cassini has focused on improving the geological and technical understanding of the Project, and progressing the Project through to a positive Scoping Study in April 2015 which was further optimised, with results released in April 2016. These studies demonstrated strong potential to become a low cost (first quartile) nickel/copper operation with an initial mine life of over 15 years. This agreement with OZ Minerals enables the Project to be progressed to a decision to mine, leveraging OZ Minerals’ significant funding and development capability.