Due to legacy activities, the Company is a party to a number of exploration joint venture agreements to explore for copper, gold, zinc, lead and uranium in Australia. Percentage interests in these joint ventures at 30 June 2019 were as follows:
Hillston: 39% interest, diluting to 16%
Callabonna: 49% interest, diluting to 30%
Junction Dam: 9.9% interest, base and precious metals rights
Junction Dam: see note below, uranium rights 0%
JV partners include Teck Australia, Marmota Energy and Red Metal, and under the terms of the agreements the Company may be required to contribute towards the exploration and other costs if it wishes to maintain or increase its percentage holdings.
In addition to the above, Variscan also holds a 19% equity interest in Thompson Resources (ASX:TMX), and the Company also holds a 2% NSR on ground adjacent to the Woodlawn Zinc Mine.
* Note: Junction Dam – uranium rights. The Company has retained a 3.75% net profits royalty on production from a uranium mine.