Monax signs agreement with FMG

South Australian junior Monax Mining has signed an agreement with Fortescue Metals Group to evaluate the potential joint venture development of a copper-gold project.

The agreement allows Monax to undertake due diligence on the Gawler Craton site.

If due diligence is successful the agreement gives the junior miner the right to negotiate terms to farm-in to the tenement and for Fortescue and Monax to form a joint venture.

Monax has an exclusive three month period to undertake the due diligence and any subsequent farm-in or joint venture agreement may allow the company to earn an interest in the project.

Fortescue’s main focus remains its Pilbara iron ore projects but the company has previously flagged the possibility of diversifying its operations.