ASX-listed gold and base metals miner Musgrave Minerals has executed a non-binding term sheet outlining a mine management and profit sharing arrangement with fellow-listed gold miner Westgold Resources, whereby Musgrave will receive 50% of profits from operations that are financed, managed and operated by Westgold.
The term sheet applies to existing gold resources at Cue, in Western Australia’s Murchison district. Other gold resources include Lena, Break of Day, Jasper Queen, Gilt Edge and Rapier South deposits on Musgrave’s 100%-owned tenements at Cue. Musgrave will retain 100% of the exploration interests and upside outside of the defined resources.
Musgrave MD Rob Waugh said this outcome reduced the technical and capital risk for Musgrave and provided the potential for a near-term development option for the company.
It also provided an option to fast-track development and would enable Musgrave to focus on its areas of expertise – exploration and discovery.