PERTH (miningweekly.com) – Aim-listed Greatland Gold has completed the divestment of its Firetower and Warrentinna tenements in Tasmania, after ASX-listed Flynn Gold exercised its options over the tenement areas last week.

The two companies in November last year entered into an agreement under which Flynn Gold had the option to purchase the two tenements for an initial two-million shares in Flynn, at a deemed price of 10c each.

The transaction also included a deferred consideration of A$500 000 on the definition of a combined mineral resource of 500 000 oz of gold at the project, a further A$500 000 on the issue of a permit to mine, and a 1% net smelter royalty on all production from the project.

The deferred cash considerations could be paid in either cash or shares in Flynn.

At the exercise of its option, Flynn MD Neil Marston told shareholders that the company was delighted to acquire the two gold and battery metals projects.

Both Firetower and Warrentinna have recorded significant mineralisation to date with excellent potential for further exploration success.

“The two projects strongly complement and enhance Flynn’s existing exploration portfolio in Tasmania, adding advanced drill-ready targets with potential for rapid development to Joint Ore Reserves Committee resource status.

“The company has also received strong support from the Tasmanian state government through its latest round of exploration drilling incentive grants. Flynn will receive up to A$132 000 in grant funds to support our drilling activities on both these newly acquired projects.”

Greatland MD Shaun Day last week said that the transaction allowed Greatland to realise immediate value from these tenements, which are outside of its core focus locations, while maintaining ongoing exposure to the upside potential of this prospective ground. 

“This is a particularly pleasing outcome at a time that Greatland is accelerating its exploration efforts within the Paterson Province,” he added.