Xanadu Mines Limited announce it has agreed a binding term sheet with STSM LLC (STSM) granting the right to earn up to 80% interest in two exploration licences XV-17774 (Oyut) and XV-21887 (Sant Tolgoi) located in the Zavkhan Province of Western Mongolia. These two licenses make up the Sant Tolgoi Project, which is considered highly prospective for discovery of new magmatic intrusion-related Copper-Nickel systems. The Agreement covers two granted Exploration Licences XV-17774 (Oyut) and XV-21887 (Sant Tolgoi) located in the Zavchan Province of Western Mongolia with a combined area of over 40km2 collectively referred to as the Sant Tolgoi Project or Sant Tolgoi Cu-Ni project. The Tenement portfolio includes numerous advanced exploration targets with real opportunity for the discovery of significant magmatic copper and nickel mineralisation.

In the Zavchan Region of Mongolia, the Sant Tolgoi Project lies on the western extension to the of the deep seated Khangai Fault systems, a metalliferous fault network which hosts several significant mafic and ultramafic intrusions that are highly encouraging for high-grade intrusion hosted copper and nickel discoveries. Early signs of several copper-nickel systems have been encountered in both historical and recent drilling. The Company has executed a binding term sheet with STSM granting the right to earn up to 80% interest in two exploration licences XV-17774 (Oyut) and XV-21887 (Sant Tolgoi) located in the Zavchan Province of western Mongolia.

Whilst binding in nature, term sheet is intended to be replaced by a formal agreement governing the full terms and conditions of the farm in transaction, which will be negotiated between the parties. The term sheet is expressed to be conditional on such formal agreement being entered into.