Stellar Resources Limited has announced a JV agreement with MMG Exploration Pty Limited, a wholly owned subsidiary of Minmetals Resources Limited. MMG is farming into Stellar's Rayne exploration licence 49/2004 on the west coast of Tasmania.

In the northeast corner of this property, there is an intense magnetic anomaly that is prospective for nickel sulphide mineralisation. The magnetic anomaly extends into MMG's adjoining tenement to the east, which also contains nickel sulphide mineralisation at Cuni.

Under the terms of the agreement, Stellar is free carried through the following stages of exploration.

Stage 1: MMG is required to spend USD 150,000 and drill one hole within 12 months of registration of the agreement with no equity earned.

Stage 2: MMG can earn a 60% interest after spending USD 2 million within 12 months of completing Stage 1.

Stage 3: MMG can increase its equity to 80% after spending an additional USD 12 million to complete a JORC inferred resource and a scoping study within 4 years of completing Stage 2.

Following the completion of Stage 3, Stellar has the option of maintaining its 20% equity interest by funding its pro rata share of expenditure or diluting down according to a standard formula. If Stellar's interest should fall to 10%, it can convert this interest to a 1.5% net smelter return royalty.

MMG has a significant presence on the west coast of Tasmania as the owner of the Rosebery polymetallic underground mine and Avebury nickel mine currently on care and maintenance.

Mr Peter Blight CEO of Stellar said that "Having a partner of the caliber of MMG will progress the Rayne prospect without drawing on Stellar's resources. This allows Stellar to remain focused on the development of its high grade Heemskirk Tin Project."