Teck Resources Ltd (NYSE:TCK) and Rox Resources (ASX:RXL) have come to terms on a joint venture and farm-in deal for the Myrtle zinc-lead deposit.
The Myrtle project, which Rox holds the rights to, includes an indicated and inferred resource of 43.6 million tons at a combined grade of 5.03 per cent.
Terms of the letter of intent include Teck being able to farm-in the tenements and earn 51 percent interest. On Teck's part they'll have to spend $5 million over a period of four years to attain that percentage.
Teck must also spend at least $1 million by July 21, 2012, part of which must include a drilling program, before they would be allowed to withdraw.
If Teck spends an additional $10 million over four more years, they would get another 19 percent interest, bringing the total to 70 percent.
Myrtle is close to MacArthur River, which is one of the largest zinc-lead deposits in the world.
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