New Frontier Minerals (ASX:NFM) has entered into a memorandum of understanding with Austral Resources (ASX:AR1) to establish a strategic alliance across the Mt Isa copper belt in Queensland.
In turn, this alliance can work towards realising the full exploration and mining potential of an enlarged asset base.
To achieve this outcome, both companies plan to work collaboratively on formalising a processing agreement whereby New Frontier will supply copper ore from its Big One deposit within the NWQ Copper Project and Austral will process ore at the Mt Kelly facility if it meets necessary input grade criteria and adds value.
New Frontier will also seek necessary approvals to have a 11,000 tonnes stock pile at Big One undergo metallurgical testwork through Mt Kelly.
Both companies will negotiate a profit-sharing formula that is mutually beneficial.
Written by Aaliyah Rogan at mining.com.au
