Emmerson Resources Ltd (ASX:ERM) has received the final $300,000 payment from Territory Resources to conclude the sale and transfer of the Warrego Mill and Mining Lease at Tennant Creek in the Northern Territory.
The company had entered into a strategic alliance with Territory to build a central mill in Tennant Creek to support and monetise Emmerson’s gold mines and other third-party feed.
Territory is progressing the re-establishment of the Warrego Mill and now plans to fast track the first stage refurbishment of the crushing, grinding and gravity circuits.
This follows the approval of the Mine Management Plan (MMP) by the NT Government and attainment of a financing facility.
Integrated exploration, mining, and processing hub
Emmerson managing director Rob Bills said: “The development of a modern, centralised processing facility at Warrego is the key to unlocking a portfolio of undeveloped gold assets in the Tennant Creek Mineral Field.
“The finalisation and transfer of the Warrego ML to Territory marks a major step forward for not only Emmerson shareholders, but all Tennant Creek stakeholders.
“It is a critical milestone towards realising Emmerson’s vision to establish an integrated exploration, mining, and processing hub.”
Emmerson has now received royalty payments totalling $275,000 pertaining to the first ore parcel from the Edna Beryl Mine.
Although initially modest, this payment represents the beginning of a growing royalty stream for Emmerson which it intends to replicate across multiple mines in the Tennant Creek Mineral Field.
Importantly, the royalty model removes the high-risk transition from discovery to mining and processing.
The royalty model also allows Emmerson to concentrate on its core business of discovering new deposits through deploying new exploration technologies.
The discovery and recent diamond drill program at Emmerson’s Mauretania project, which intersected 15 metres at 45 g/t gold including 4 metres at 158 g/t gold is an example of this approach.