Greenvale and SRL Hot Rocks agree farm-in and JV for geothermal project

Greenvale CEO, Alex Cheeseman, said: “The cost and availability of power is a significant issue in Australia, especially in north-west Queensland where multiple large scale resource projects are currently being explored and developed. The Millungera Basin represents one of Australia’s most attractive regions geologically to target economically exploitable geothermal energy for a clean-energy future.

“Having identified the potential of Millungera and worked through an extensive permitting and access process, we are excited to have now attracted a major partner that can undertake the initial heavy lifting to explore and advance the project.

“This value accretive farm-in approach allows Greenvale to focus exploration resources on its uranium portfolio, while also unlocking the latent value within our geothermal assets.”

Located approximately 120 km east of Mount Isa, within the North-West Minerals Province, the Millungera Basin geothermal project sits over one of the most prospective areas for geothermal energy in Queensland.

The targeted heat source for the Millungera Basin is high heat producing intrusives underlying the basin. Granitic bodies have been inferred from geophysical data to underlie the Millungera Basin and are possible Williams Supersuite equivalents.

The Millungera Basin has a total stored thermal energy potential likely to exceed 611 000 PJ (at 90% probability). The Millungera project has the potential to be a significant contributor future clean energy supply for Australia.

Following initial applications in 2022, the company has now been notified of the successful grant of the geothermal exploration permits (EPG). The granted permits, together with agreed Native Title Party access agreements, set the conditions for exploration efforts to commence immediately under the farm-in agreement.

Under the terms of the farm-in, SRL-HR are required to sole-fund work pro-grammes to explore and advance the Millungera Basin geothermal project. The farm-in is to be completed in two phases:

• Phase 1: Requiring a AUS$2 million spend over a maximum period of three years.
• Phase 2: Requiring a AUS$3 million spend over a maximum period of two years.

SRL-HR can withdraw from the farm-in at any stage if they have met the agreed minimum expenditure for each phase.

At the completion of the farm-in, the parties may form a joint venture to contin-ue to advance the project. The JV will initially be split 80/20 to SRL-HR/Greenvale. The future JV agreement terms and commercial construct have been negotiated and agreed in-principle. Industry standard clauses for JV management, including fees, dilution, minority partner asset sale, and assignment of responsibilities apply.

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