Joint Venture (JV) agreement signed with $10BN IGO.

This morning our junior exploration Investment TechGen Metals (ASX: TG1) announced a Joint Venture (JV) agreement with $10BN capped IGO at its copper prospects in the Paterson Province, WA.

The agreement will see IGO spend $500k to earn-in an 80% interest in TG1’s project.

TG1 will retain a 20% free carried interest in the project through to the completion of a feasibility study meaning if IGO makes a discovery, TG1 don't need to contribute anything up until the project is considered for development.

The project sits ~8km away from the Nifty copper mine and has several geophysical/geochemical prospects that could be drilled.

Our view is that any discovery here would be worth multiples of TG1’s market, especially considering the company has a market cap of just $5.1M.

We also note that this is TG1’s second JV with a multi-billion $ major - TG1 signed a similar farm-out agreement with $44BN RIO Tinto back in September 2022 - see our Quick Take on that news here: TG1 brings in Rio Tinto as a project partner

The key terms of the agreement are as follows:

• IGO to earn-in an 80% ownership for $500k in exploration expenditure over 4 years.
  
• IGO can withdraw from the agreement at any time after 24 months - IF IGO withdraws they retain a 0% interest in the project.
  
• TG1’s 20% interest is free-carried through to a feasibility study.

What’s next for TG1?

At this stage, our focus for TG1 is on the company’s gold project in NSW (John Bull) and its WA Copper projects (Station Creek & Mt Boggola) - all of which the company drilled late last year.

Once the company has firmed up a timeline for its next round of drilling, we are planning an update to our TG1 Investment Memo.

In that Memo, we will detail what we want to see the company achieve next, why we continue to hold TG1 in our portfolio and the key risks to our Investment Thesis.