PERTH (miningweekly.com) – ASX-listed Musgrave Minerals has exercised its pre-emptive rights over the Cue joint venture (JV), in Western Australia, taking full ownership of the project.
In June, JV partner Silver Lake Resources announced that it had agreed to sell its interest in the project to fellow-listed Westgold Resources for a cash consideration of A$1.5-million. However, the sale had been subject to Musgrave not exercising its pre-emptive right.
Silver Lake said on Tuesday that with Musgrave exercising this option, the company would proceed to complete the transaction with Musgrave on equivalent terms to those agreed upon with Westgold.
Musgrave MD Rob Waugh told shareholders that the company saw considerable value in the opportunity to acquire Silver Lake’s interest in the Cue JV, and to move to full ownership.
Musgrave recently flagged the potential for an enlarged operation at Cue, after a resource update at the Break of Day and Lena deposits, which are estimated to host a combined mineral resource of 3.55-million tonnes, grading 3.09% gold for 352 000 oz of gold.
“Drilling is set to resume at Break of Day in early August to extend the high-grade gold mineralisation outlined to date,” Waugh said.