Photo by: Reuters
PERTH (miningweekly.com) – ASX-listed Intermin Resources has struck an exclusivity agreement with fellow-listed Focus Minerals over the Coolgardie gold project, in Western Australia.
The five-month exclusivity period will allow the two companies to finalise formal documentation, and to secure all the necessary approvals, for the sale of the 2.1-million-ounce Coolgardie gold project, which includes the 1.2-million-tonne-a-year Three Mile Hill processing plant.
Under the terms of the proposed transaction, Intermin will acquire the project for a total of A$40-million, payable in cash and shares over a three-and-a-half-year period.
Focus CEO Zhaoya Wang said on Monday that the exclusivity deal established a clear pathway to negotiate and execute formal documentation for the sale of Coolgardie, and allows Focus to continue progressing its Laverton gold project.
“Focus is excited about the possibility of retaining exposure to Coolgardie through the receipt of Intermin shares as part consideration for the proposed transaction and the prospect of the proposed merger of Intermin and MacPhersons Resources proceeding.”
Wang said that the Coolgardie project complemented Intermin’s existing projects, and potentially MacPhersons’, all of which were proximal to the Three Mile Hill processing facility.
Intermin MD John Price said that the potential consolidation of the Intermin and MacPhersons assets with the Coolgardie gold project would be a natural fit, delivering additional high-grade opencut and underground ore sources to the baseload Boorara project, and Intermin’s satellite projects, as well as a conventional 1.2-million-tonne-a-year processing facility.
“We look forward to working with MacPhersons and Focus on progressing these transactions and embarking on an exciting new chapter for all shareholders and the regional communities in which we operate.”
Intermin is in the midst of a takeover offer of fellow listed MacPhersons, offering one of its own shares for every 1.8227 MacPhersons shares held. The merger, which has been unanimously recommended by the MacPhersons board, will create a company with a mineral resource estimate of 1.15-million ounces of gold.