News blog

Rose Petroleum

• BY: Andrew Hore |
• POSTED: 04/03/2014 |

Rose Petroleum has found a joint venture partner for one of its non-core mining interests. 

TSX Venture-quoted Lowell Copper, which is run by David Lowell who has discovered a number of mines including La Escondida which is the world’s largest copper mine, will earn a 25% stake in AVEN Associates for a minimum of $250,000 of spending. That will fund a three-hole drilling programme on AVEN’s porphyry copper project in New Mexico, which should commence by the second half of 2013.

The joint venture lasts four years. If Lowell Copper spends a further $2.5m it can increase the stake to 51%. Spending an additional $3.5m can take the AVEN stake to 70%.

If either company ends up with a stake in AVEN of less than 10% then it will convert into a 1% free-carry.

The project is located in the Hillsboro-Chino-Tyrone-Lordsburg-Bisbee porphyry copper belt.

Rose is focused on oil and gas but it has a number of mining interests from when it was Vane Minerals. In January, Rose completed the acquisition of two hydrocarbon exploration licences in south east Germany (the Konstanz and Beiberach licences) which cover 635,000 acres and each licence has at least four potential hydrocarbon zones. A third licence was subsequently granted in the Weiden Basin in Germany, also in the South East. Rose has to spend €900,000 on this licence over a three year period. One well has already been drilled on the licence area. These licences have conventional and unconventional plays.

At 0.55p a share, up 0.05p, Rose is valued at £4.36m.

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