Serengeti Resources Inc. (SIR.V) announced that Xstrata Copper Canada, a business unit of Xstrata Canada Corporation, has entered into an option agreement to explore a number of Serengeti's Quest JV properties, currently held with Fjordland Exploration Inc. (FEX.V) in a 63.7% (SIR) and 36.3% ( FEX ) joint venture. The agreement provides Xstrata the right to earn an initial 51% interest in the properties by funding $5 million in exploration expenditures and making firm and optional cash payments to the joint venture over four years, totalling $325,000. Xstrata has the right to earn an additional 14% interest for an aggregate 65% interest in the properties by completing a feasibility study or incurring no less than an additional $25 million in expenditures on the properties.
The six properties that are subject to this agreement (Rob, Ping, Reid Lake, ST, PG, and MP) total approximately 27,700 hectares and are located in the Quesnel Trough porphyry belt between Mt. Milligan and south of Prince George, British Columbia. All the properties are considered prospective for hosting porphyry copper-gold deposits and several of these properties already have drill targets identified, as a result of prior exploration by Serengeti and Fjordland by expending of approximately $1.7 million.
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