Glencore holds its stake in the project via its subsidiary Mount Isa Mines and on completion of the acquisition, Renegade will take over Sovereign’s 23 per cent.

Sovereign elected to cease contributing to joint venture expenditure on the tenements, which resulted in its interest reducing.

Once the acquisition has gone ahead, Renegade will pay $100,000 or, if Sovereign chooses, issue 15 million Renegade shares to Sovereign.

The acquisition remains subject to all necessary approvals to transfer the Carpentaria JV interest to Renegade, as Sovereign has not yet exercised its first right of refusal to acquire the interest.

Renegade has been working on this transaction for five months now and is attracted to the project for its exposure to prospective copper and gold in Queensland’s Cloncurry region.

“Initial due diligence suggests the potential to assess opportunities identified by historical work on the tenements, including both gold and copper prospects,” Renegade stated.

The Carpentaria JV has five permits for the Mt Marathon, Mt Avarice, St Andrews Extended, Fountain Range and Corella River tenements.

Renegade will have access to these tenements granted it contributes to the JV in accordance with its interest, as per the key terms of the acquisition.

If one of the partners does not contribute to project expenditure, its interest will dilute by 1 per cent for every $200,000 spent by another partner.