This includes the tenement immediately along strike from IGO’s Nova nickel-copper-cobalt operations and the Symons Hill tenement adjacent to Nova.

IGO is set to pay $5.5 million in cash to Boadicea in addition to subscribing to the latter’s shares in the amount of $1.5 million at $0.24 per share.

Through the agreement, IGO will have access to nine Fraser Range tenements for exploration for five years.

“As the dominant landholder along the Fraser Range and the operator of the Nova operation, IGO maintains a strong conviction for the potential of the region to host multiple nickel-copper sulphide deposits,” IGO managing director and chief executive Peter Bradford said.

“The Symons Hill tenement in particular, which adjoins the Nova mining lease, is an area that has received relatively little exploration to date and represents the extension of the Nova mafic-ultramafic intrusive system.

“We are keen to explore this area for repetitions of Nova-style nickel-copper-cobalt mineralisation.”

Upon making a discovery, IGO will pay $50 million in cash to Boadicea.

IGO will also pay a net smelter return royalty of 0.75 per cent on all revenues from the Fraser Range tenements.

“The agreement with IGO/Newsearch provides a substantial cash injection and a unique opportunity to leverage the exploration skills of Newsearch within the Fraser Range to explore for nickel sulphide mineralisation, allowing upside participation from any discovery,” Boadicea managing director Jon Reynolds said.

IGO will manage the Fraser Range assets for the five-year period and meet all exploration costs.