Allion Legal has advised Breakaway Resources on its joint venture agreement worth $8 million with Sandfire Resources, to explore the Altia base metals project in north-west Queensland.
Law firm principal Stuart Mengler, senior associate Fiona Ellett and associate Chris Rosario advised Breakaway Resources worked on the deal.
Breakaway announced last week that Sandfire had agreed to spend $4 million over three years to earn a 60 per cent interest in the project. It has the option to increase its portion to 80 per cent by spending another $4 million over three years.
The deal involves a farm-in to the project by Sandfire and a subscription by Sandfire for shares in Breakaway equivalent to a 6.3 per cent stake.
Sandfire’s involvement in Breakaway provides Breakaway with a boost to its working capital for ongoing copper-gold exploration in NW Queensland and is a strong endorsement of the project's exploration projection.
“We have been associated with Breakaway on previous transactions and are delighted to have been involved in advising the company on the next stage of its operations,” said Mengler.
Sandfire was represented by its in-house counsel on the transaction.