Lincoln Minerals (LML) said on Monday it had concluded a joint venture agreement with Mineral Enterprises (ME) in respect to LML's 100% owned tenement near Port Lincoln.
The tenement, Gun Flat, is located on the southern Gawler Craton, South Australia.
The agreement follows a heads of agreement signed between Mineral Enterprises and LML in August 2007.
ME has contributed $500,000 of funding in respect of the initial drilling programs at Gum Flat to reach the first ‘minimum expenditure' milestone. The company said this was achieved following the completion of a diamond core drilling program in December 2007.
"This is an exciting development for Lincoln Minerals and will enable the Company to continue to maximise the iron ore potential of the Gum Flat Project for its investors," managing director of Lincoln Minerals, John Parker said.
The joint venture agreement provides that Mineral Enterprises will earn a 20% interest in the Gum Flag Project by contributing a further $500,000 of exploration expenditure by 31 December 2008.
Shares in LML fell 5.26% to 27 cents at 11:13AM AEST.
