PERTH (miningweekly.com) – Western Australian gold and base metals explorer Southern Cross Goldfields could earn up to 70% in the Radio gold mine, it said on Friday, announcing a farm-in agreement with Renaissance Minerals.
Southern Cross could earn the stake by funding up to A$2.5-million towards the redevelopment of the gold mine, which could feed its proposed 400 000-t/y Marda processing facility.
The Radio mine historically produced 71 050 oz at 38.5 g/t gold.
Under the agreement, Southern Cross would also acquire Renaissance’s Mount Ranking gold project, for five-million shares and ten-million options, exercisable at 10c a share, subject to shareholder approval.
Southern Cross said that the agreement consolidated its ground holding in the Marda and Southern Cross region of Western Australia, increasing its total tenement holding to over 3 500 km2, and opening up a new high-grade gold production opportunity at the Radio gold mine.
Renaissance MD Justin Tremain said the transaction would allow the company to focus on its existing Pijin gold project, while still retaining a 30% interest in the Radio gold mine, with substantially lower financial risk to the company.
“The Radio gold mine will continue to be advanced towards production under the management of an experienced development team at Southern Cross.
“Importantly, Renaissance becomes a significant shareholder and option holder in Southern Cross and gains exposure to Southern Cross’ Marda gold project and its large landholding in the Southern Cross district,” he added.
The agreement was subject to shareholder approval.