PERTH (miningweekly.com) – ASX-listed Musgrave Minerals on Monday said that it was considering its options with regards to the Cue project after fellow-listed Silver Lake Resources last week announced its intention to sell its interest in the joint venture.
Silver Lake has reached an agreement with Westgold Resources to divest of its Murchison assets, including its interest in the Cue project, for A$10-million.
Westgold is offering a cash consideration of A$1.5-million for the Cue asset; however, Musgrave has a 30-day period in which to exercise its pre-emptive rights to purchase Silver Lake's interest on equivalent terms.
Musgrave on Monday said that it was considering its options with regards to its pre-emptive rights, pointing out that the company was continuing to work towards delivering an upgraded resource estimate for the Lena and Break of Day deposits, at the Cue project, with a resource estimate expected in mid-July.
Musgrave earlier this year completed its Stage 1 earn-in at the Cue project, spending $2.7-million to secure a 60% shareholding. The company previously also elected to proceed with the Stage 2 earn-in, which could see it increase its stake in the project area to 80%, by spending an additional A$1.8-million on exploration within the next two years.