The ASX 200 battery minerals miner reported on progress with two new joint ventures.
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The IGO Ltd (ASX: IGO) share price is in the red in early trade, down 2.7%.
IGO shares closed yesterday trading for $10.41 and are currently trading at $10.13 apiece.
This comes following several price-sensitive updates from the S&P/ASX 200 Index (ASX: XJO) battery metals miner this morning.
What updates are impacting the IGO share price today?
The IGO share price is sliding despite the company reporting that its wholly-owned subsidiary, Western Areas Limited, has satisfied the Stage-1 requirements of its Earn-In and Joint Venture Agreement (EIJVA) with Metal Hawk Ltd (ASX: MHK).
The Stage-1 agreement required IGO to spend $3 million on exploration across the JV projects. It achieved this exploration spend ahead of schedule. IGO is now entitled to a 51% joint venture interest in Metal Hawkâs Kanowna East, Emu Lake and Fraser South projects.
The IGO share price could also be impacted by the miner announcing it will proceed with Stage-2 of the EIJVA. That requires the company to spend another $4 million on exploration to earn an additional 24% joint venture interest.
Diamond drilling is due to recommence at Kanowna East in July.
Metal Hawk retains 100% of the gold rights at Kanowna East and Emu Lake.
Commenting on the progress, Metal Hawk managing director Will Belbin said:
We have been really pleased with the pace and quality of exploration carried out by our joint venture partner, which has exceeded its obligation under the earn-in agreement, and with the results achieved to date.
The election by IGO to progress to Stage-2 is a tremendous outcome for Metal Hawk that will see a substantial step-up in exploration expenditure without drawing on shareholdersâ funds. We also see this as a strong endorsement of the quality and potential of these projects.
What else was announced?
The JV partnership entails an exploration licence (E29/638), which is at the core of St Georgeâs Mt Alexander Project, focused on nickel, copper and platinum-group elements (PGE).
According to the release:
E29/638 covers the high-grade Cathedrals, Stricklands, Investigators and Radar nickel-copper-PGE discoveries… St George (75%) manages activities on E29/638, with IGO retaining a 25% non-contributing interest until there is a decision to mine.
The partnership follows on from IGOâs successful takeover of Western Areas.
With a 13-line kilometre seismic survey completed, and a moving loop electromagnetic survey underway, drilling is expected to kick off in four weeks.
IGO share price snapshot
Although itâs struggled in 2022, the IGO share price remains up 34% over the past 12 months. That compares to a full year loss of 11% posted by the ASX 200.
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Motley Fool contributor Bernd Struben has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.