FMR to Invest A$13M for 60% Stake in Llahuin Copper-Gold JV
Southern Hemisphere Mining has partnered with FMR Resources in a conditional joint venture to explore the highly prospective Southern Porphyry Copper-Gold Target at the Llahuin Project in Chile, with drilling planned for late 2025.
- FMR Resources to earn up to 60% interest by funding A$13 million exploration
- Minimum 1,400m deep drill hole planned for Q4 2025 at Southern Porphyry Target
- Southern Hemisphere retains 100% ownership of northern concessions and existing JORC resources
- FMR appoints Oliver Kiddie as Managing Director to lead exploration efforts
- FMR completes $2.2 million placement to support JV drilling and development
Strategic Joint Venture to Unlock Deep Copper-Gold Potential
Southern Hemisphere Mining Limited (ASX – SUH) has entered into a conditional joint venture agreement with FMR Resources Limited (ASX – FMR) to advance exploration at the southern portion of the Llahuin Copper-Gold Project in Chile. The JV focuses on the Curiosity-Southern Porphyry Copper-Gold Target, a large, deep-seated porphyry system identified through extensive geophysical surveys and historical drilling.
Under the agreement, FMR Resources will fund up to A$13 million in exploration expenditure and make staged payments totaling A$2.67 million to earn up to a 60% interest in four key concessions. Southern Hemisphere retains full ownership of the northern concessions, which contain all existing JORC-compliant mineral resources, including the Ferro deposit and associated targets.
Drilling Plans and Technical Backing
The JV’s initial phase includes a mandatory minimum expenditure of A$1 million within the first year, which involves drilling at least one deep hole of no less than 1,400 metres targeting the core of the Southern Porphyry anomaly. This drill program is scheduled to commence in the fourth quarter of calendar year 2025, marking a significant step towards testing the potential for a major copper-gold-molybdenum discovery.
The Southern Porphyry Target is supported by coincident magnetic, induced polarization, and magnetotelluric resistivity anomalies, suggesting a substantial mineralized system approximately 1,000 metres below surface. Historical shallow drilling has confirmed porphyry-style mineralization above this target, but the core remains untested, presenting an exciting opportunity for discovery.
Leadership and Capital Support
FMR Resources has strengthened its leadership by appointing Oliver Kiddie as Managing Director. Mr. Kiddie brings over 20 years of international experience in base metal and gold exploration, with a proven track record of advancing large-scale projects. His expertise is expected to be instrumental in guiding the JV’s exploration strategy and drilling execution.
To support the JV and ongoing development, FMR has completed a $2.2 million placement at $0.16 per share, attracting sophisticated investors including renowned resources figure Mark Creasy. The capital raise will fund geophysical reprocessing, drilling, and working capital, underpinning the company’s commitment to unlocking value at Llahuin.
Southern Hemisphere’s Ongoing Exploration and Resource Growth
Southern Hemisphere Mining will continue to explore and develop its 100% owned northern concessions, aiming to expand the existing JORC resources towards a mine-scale operation. The company also maintains exploration activities at its Cardawan Copper Project in Western Australia, diversifying its portfolio.
Chairman Mark Stowell highlighted the significance of the partnership, noting the alignment of expertise and resources to advance a potentially company-making discovery. The next 12 months are expected to be pivotal as the JV progresses through due diligence, drilling, and resource evaluation.
Bottom Line?
The upcoming deep drilling at Llahuin’s Southern Porphyry Target could redefine the project’s scale and value, setting the stage for a transformative exploration phase.
Questions in the middle?
- Will the initial deep drill hole confirm the size and grade of the Southern Porphyry Target?
- How will the JV structure influence future resource development and potential mining operations?
- What are the timelines and likelihood of shareholder approvals for the placement and option issuances?
