Woomera Mining has signed a binding term sheet to earn up to a 100% interest in Kincora Copper’s Bronze Fox copper-gold project in Mongolia’s Southern Gobi copper belt.

Under the agreed terms, Woomera is committed to investing $4m over five years period to earn an 80% stake in the project.

Woomera can then acquire the remaining 20% stake for $10m in cash and a 1% net smelter royalty or establish an 80/20 joint venture.

Additionally, Woomera will issue A$450,000 ($297000) in shares and pay A$100,000 in cash to Kincora.

The agreement is contingent on several conditions, including a capital raise by Woomera on the ASX (Australian Securities Exchange) and the execution of a formal earn-in implementation agreement.

Woomera will manage the exploration programmes during the earn-in period and is planning to prepare for an extensive exploration campaign.

Located almost 450km south of Ulaanbaatar, the 175km² Bronze Fox Project comprises three underexplored, large and near surface porphyry systems as well as other early-stage copper and gold targets.

Woomera CEO Ralf Kriege said: “This transaction provides Woomera with an opportunity to explore for high-quality, large-scale copper-gold discoveries, offering globally significant potential, in an established porphyry copper region.”

Woomera plans to start an exploration programme at the Bronze Fox project to focus on new discoveries, increase the resource base and target the higher-grade sections of the system.

Kriege added: “We are eager to unlock substantial upside and collaborate closely with Kincora to advance the Southern Gobi project towards its full potential.”

Kincora's previous drilling efforts have identified three large porphyry complexes, highlighting the project's potential for new discoveries and resource delineation.