Estrella Resources joint venture and royalty deed with Murak Rai Timor

Estrella Resources Limited (ASX: $ESR) has finalized a Joint Venture and Royalty Deed with state-run Murak Rai Timor (MRT) for the establishment of Estrella Murak Rai Timor (JV) to explore and potentially exploit mineral deposits in Timor Leste. The JV will be 70% owned by ESR and 30% owned by MRT, with a focus on exploring for manganese, copper, and gold mineralization in three granted Exploration and Evaluation Licenses (EEL's) - ZA001, ZA002, and ZA003.

Executive commentary on the joint venture

Yesterday's formal signing ceremony in Dili between Estrella and Murak Rai Timor to form Estrella Murak Rai Timor represents a significant milestone for our company in Timor Leste. The next steps now are for the JV company to get out on the ground and ramp up exploration across the three granted EEL's with an initial focus along the highly prospective Noni Formation where thick manganese-rich bands have been uncovered just below the surface. Proposals are well underway for trenching and drilling to assist in the quantification of the high-grade manganese material and look forward to updating the market on the JV's progress within the EEL's.

Summary of Estrella Resources joint venture and royalty deed

Estrella Resources has established a joint venture with state-run Murak Rai Timor (MRT) to form Estrella Murak Rai Timor (JV) for the exploration and potential exploitation of mineral deposits in Timor Leste. The JV, in which ESR holds a 70% interest, will focus on exploring for manganese, copper, and gold mineralization in three granted Exploration and Evaluation Licenses (EEL's) - ZA001, ZA002, and ZA003. The JV will be solely responsible for funding requirements, and MRT will be free-carried until the completion of a Feasibility Study. Additionally, MRT can elect to transfer its 30% interest in the JV to ESR and receive a 2% royalty on the Net Smelter Return following the release of the Feasibility Study. The company's Managing Director, Chris Daws, expressed optimism about the JV's progress and the focus on exploring the highly prospective Noni Formation for manganese-rich material. The establishment of this JV represents a significant milestone for Estrella Resources in Timor Leste and signifies an exciting phase for the future development of the mining sector in the region.