According to Mining News Pro - Eastern Iron would be required to pay a call option fee of A$10 000 by September 11 to have an exclusive option to acquire an initial 25% interest in the project for a A$150 000 cash payment and the issue of A$200 000 worth of ordinary shares, subject to shareholder approval.

Once Eastern Iron has acquired its initial interest, the two parties would launch a farm-in arrangement over the project area, which could see Eastern Iron increase its stake in the project by an additional 35%, by spending A$650 000 on exploration under the Stage 1 earn-in, over a 24-month period.

The Stage 2 earn-in would see the company spend an additional A$1.5-million within the following 36 months, in order to acquire the remaining 40% in the project.

Within 30 days of the approval date, Eastern Iron and Heavy Minerals must negotiate a royalty deed, which will include a 0.5% net smelter return royalty for Heavy Metal on all the copper produced at the project area, capped at 30 000 t of copper equivalent, with the royalty not payable when copper prices are below $6 000/t.

The company will also have the right to buy back the royalty for A$1.5-million.

The project area under the call option covers 161 sub-blocks with a diverse geology adjacent to, and extending out from known cobalt mineralisation, along with cobalt anomalies noted within the tenements.