Exterra sells Linden project
PERTH (miningweekly.com) – ASX-listed gold developer Exterra Resources has agreed to divest of its Linden project, in Western Australia, to Fortuna SL Mining for A$7-million.
The cash consideration would be paid in tranches, and Fortuna would also grant Exterra a 2% gross royalty on the mining property, as well as a 1% gross royalty on the Fortitude tenements, which were currently under an option to purchase agreement.
Furthermore, Fortuna would be liable for a resource and regional drilling programme, to be completed before the end of May, and an updated Joint Ore Reserves Committee-compliant resource for the Second Fortune deposit, by July 15.
Exterra MD John Davis said on Monday that the transaction was in the best interest of shareholders, given the current difficult economic climate.
“It provides the company with cash and allows it to actively explore its remaining exploration projects and seek new opportunities,” Davis said.
He pointed out that while exploration work at the Linden project had indicated that the project was highly prospective for gold mineralisation, there was a range of risks to the owner of the project in developing, mining and processing. These risks were considered to outweigh the potential rewards of the project.
Work to date had revealed that the project would require a significant capital investment, Davis said, compared with the company’s current market capitalisation, and additional capital would need to be raised to fund the project, which would result in significant dilution to shareholders.
Exterra’s focus at Linden had been on the Second Fortune deposit, where a 2014 prefeasibility study revealed that a A$5-million investment could result in the recovery of 56 600 oz, over a mine life of two-and-a-half years.
The divestment would be subject to a number of conditions, including regulatory and shareholder approval.
Article Enquiry
Email Article
Save Article
Feedback
To advertise email advertising@creamermedia.co.za or click here
Announcements
What's On
Subscribe to improve your user experience...
Option 1 (equivalent of R125 a month):
Receive a weekly copy of Creamer Media's Engineering News & Mining Weekly magazine
(print copy for those in South Africa and e-magazine for those outside of South Africa)
Receive daily email newsletters
Access to full search results
Access archive of magazine back copies
Access to Projects in Progress
Access to ONE Research Report of your choice in PDF format
Option 2 (equivalent of R375 a month):
All benefits from Option 1
PLUS
Access to Creamer Media's Research Channel Africa for ALL Research Reports, in PDF format, on various industrial and mining sectors
including Electricity; Water; Energy Transition; Hydrogen; Roads, Rail and Ports; Coal; Gold; Platinum; Battery Metals; etc.
Already a subscriber?
Forgotten your password?
Receive weekly copy of Creamer Media's Engineering News & Mining Weekly magazine (print copy for those in South Africa and e-magazine for those outside of South Africa)
➕
Recieve daily email newsletters
➕
Access to full search results
➕
Access archive of magazine back copies
➕
Access to Projects in Progress
➕
Access to ONE Research Report of your choice in PDF format
RESEARCH CHANNEL AFRICA
R4500 (equivalent of R375 a month)
SUBSCRIBEAll benefits from Option 1
➕
Access to Creamer Media's Research Channel Africa for ALL Research Reports on various industrial and mining sectors, in PDF format, including on:
Electricity
➕
Water
➕
Energy Transition
➕
Hydrogen
➕
Roads, Rail and Ports
➕
Coal
➕
Gold
➕
Platinum
➕
Battery Metals
➕
etc.
Receive all benefits from Option 1 or Option 2 delivered to numerous people at your company
➕
Multiple User names and Passwords for simultaneous log-ins
➕
Intranet integration access to all in your organisation

















