PERTH (miningweekly.com) – Metals developer OreCorp’s Tanzanian subsidiary has completed its earn-in obligations into the Nyanzaga gold project, and has now exercised its option to gain full control of the project.
OreCorp acquired a 25% stake in the project through spending around $14-million in completing a prefeasibility study (PFS) and additional feasibility study related work.
The company also acquired an additional 26% interest from project partner Acacia Mining for $3-million, taking its interest to 51%.
This agreement was subject to approval from the Tanzanian Fair Competition Commission and the newly established Mining Commission.
Meanwhile, OreCorp has also inked a binding conditional heads of agreement with Acacia and the joint venture vehicle Nyanzaga Mining Company to gain full ownership of the project by making a further $7-milion payment.
Acacia will also retain a net smelter return royalty capped at $15-million, which will be paid at 1% with a gold price of less than $1 600/oz and at 2% with a gold price of more than $1 600/oz.
The acquisition of the additional 49% interest in Nyanzaga is also conditional on Tanzanian regulatory approvals, on the grant of a special mining licence for the project, and on the parties entering definitive documents for the acquisition.
The Nyanzaga project is currently estimated to host a mineral resource of 3.1-million ounces, grading 4 g/t gold.
A 2017 PFS estimated that the project could produce 213 000 oz/y over a 12-year mine life, with preproduction costs estimated at $287-million and all-in sustaining costs at $838/oz.
A definitive feasibility study is currently under way.