Critical minerals miner IGO has taken up a majority stake in a copper project in northern Western Australia after pouring $15 million into exploration.
IGO earned the 70 per cent stake in the Yeneena copper project from ASX-listed Encounter Resources after inking the agreement in 2020.
The pair will now form a joint venture to continue exploring the project area located in the Paterson province also pegged by the likes of Rio Tinto.
“We are delighted to be working in joint venture with IGO to unlock the significant copper potential at Yeneena,” Encounter executive chair Will Robinson said.
“The Paterson Province is located in a tier one mining jurisdiction and represents a globally significant opportunity for new copper discoveries under shallow cover using leading edge exploration techniques.
“We look forward to continuing to work closely with IGO to advance the copper potential at Yeneena in what is an exciting time for the Paterson province.”
With a market capitalisation of $173.99 million, Encounter is targeting copper, niobium and rare earth elements across six early-stage projects in WA and the Northern Territory.
IGO recently unveiled its new strategy to the market - focusing on lithium, copper and nickel - as several of its key assets move onto care and maintenance.
Speaking on the strategy, chief executive Ivan Vella said in terms of pursuing copper, the miner was more focused on exploration and early-stage development over M&A.
Nickel shifted to the third commodity of interest, as IGO mothballs two of its nickel assets and prepares to shelve its Nova nickel mine as it nears the end of its life.
Encounter’s shares were down 2.85 per cent to 34 cents apiece.
