WPG eyes gold projects in South Australia
PERTH (miningweekly.com) – South Australia-focused WPG Resources has entered into a binding term sheet with fellow-listed Mungana Goldmines to acquire the Tarcoola and Tunkillia gold projects.
The Tunkillia project has an estimated resource of 26.3-million tonnes, grading 1.04 g/t gold and 3 g/t silver for 878 000 oz of gold and 2.5-million ounces of silver, while the Tarcoola gold project is estimated to host 973 000 t of resource, grading 3.12 g/t gold for 97 540 oz of gold.
“The Tarcoola and Tunkillia gold projects are the types of opportunities we have been seeking for more than two years,” said WPG executive chairperson Bob Duffin.
“They fit neatly in our sweet spot – existing resources with additional exploration potential, where value can be added by our management team with further exploration aimed at extending the resource base, obtaining all necessary approvals for project development, the completion of bankable feasibility studies, and eventually the arranging of project development capital.”
Under the terms of the agreement, WPG would pay an up-front acquisition price of about A$2.40 per attributable ounce of gold, payable in cash and shares.
WPG has agreed to a A$150 000 deposit, and upon completion of the sale WPG would pay Mungana a further A$1.35-million in cash and 7.5-million fully paid ordinary shares.
An additional consideration of up to A$1.25-million would also be payable in a number of stages, on the achievements of certain milestones, while WPG would also pay Mungana a net smelter return royalty for both gold and silver produced from the Tunkillia gold project.
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