OZ has been in Jamaica for the past three years as part of farm-in agreements with Toronto-listed junior Carube Copper Corp.
The company had spent $C8.3 million to earn a 70% stake in the Bellas Gate project and was sole-funding further work to get to 80%.
It also had a separate $6.5 million farm-in over Carube’s Above Rocks project.
OZ will transfer its 70% stake in Bellas Gate back to Carube, as well as several 100%-owned tenements acquired by OZ in 2014.
Carube will be required to pay OZ $8.5 million within one year of the project reaching commercial production, and a further $4 million within two years of commercial production.
OZ will also be granted a 2% net smelter royalty, capped at $20 million.
For the 100%-owned OZ tenements, Carube will pay $1.5 million within one year of commercial production and a 2% NSR.
Carube will retain 100% of the Above Rocks project.
OZ was seeking a large copper porphyry deposit with best results returning 294m at 0.56% copper equivalent, including 96m at 1%, and 297m at 0.53% copper equivalent, including 55m at 1%.
“After a comprehensive review of exploration results, we determined that while copper porphyry style mineralisation was identified at multiple prospects, the drill intersected grades weren’t indicative of the types of deposits we are looking for,” OZ managing director and CEO Andrew Cole said.
“Capital discipline is a core part of our strategy and while the Jamaican exploration programs were completed on time and budget, we have decided not to invest further in the program.”
Carube said it would benefit from the $14 million of exploration work, including over 14,000m of drilling, completed by OZ.
Meanwhile, OZ will focus on its Australian early stage opportunities through four farm-in and joint venture agreements with Minotaur Exploration, Toro Energy and Cassini Resources in Queensland, Western Australia and South Australia in copper, copper-gold and nickel.
“OZ Minerals is committed to building a pipeline of opportunities and rigorously progressing these,” Cole said.
“We will continue to carry out due diligence of exploration projects as well as established projects both nationally and internationally.”
OZ has a 2016 exploration budget of $A10-15 million.
OZ shares were up by 3% to $6.37.
