Caprock Corp. has announced that a joint venture has been finalized with BHP-UTAH International Inc. of San Francisco on Caprock's North Park, Colo., mineral properties.
Under the terms of the agreement BHP-UTAH would have the right to earn up to a 55 percent interest in the company's properties by contributing at least $15 million in exploration and development.If the venture proves successful BHP-UTAH will be required to fund all development and mining activities until the project reaches payout.
Caprock Corp. will receive a 45 percent interest of a defined 15 percent net profits interest until capital costs have been repaid to BHP-UTAH. Thereafter Caprock's interest will revert to a 45 percent working interest in the venture.
A recent helicopter electromagnetic survey and ground loop electromagnetic survey have been completed by BHP-UTAH revealing encouraging results and a core drilling program will soon be under way to further test the target areas.