Intermin Resources Limited (ASX:IRC) is collaborating with Focus Minerals Ltd (ASX:FML) to complete the potential acquisition of the 2.1 million-ounce Coolgardie Gold Project and Three Mile Hill processing plant.
Both are making progress with formal documentation for the potential $40 million acquisition by Intermin and securing the regulatory approvals required to enter into and complete that transaction.
With this work ongoing, the parties have agreed to extend the exclusivity period by three months with the aim of having formal documentation completed for execution within this period.
Intermin managing director Jon Price said: “Both parties are fully committed to progressing the formal documentation and securing the regulatory approvals required to enter into and complete the transaction, with the aim of executing the sale agreement in coming months.
“This would then enable consolidated feasibility work to be completed by incorporating the Coolgardie Gold Project while allowing Focus to concentrate on advancing its Laverton project in the north eastern goldfields at a time of record Australian dollar gold prices.”
The Coolgardie project in relation to other Intermin projects.
Earlier this year Intermin entered an exclusivity deed for the potential sale of the Coolgardie project including the 1.2 million tonnes per annum Three Mile Hill processing plant, which is on care and maintenance.
As the potential transaction remains subject to the negotiation of, and entry into, formal documentation and the receipt of necessary approvals, there is no assurance that it will proceed.
If the transaction is completed, Intermin intends to incorporate the Coolgardie Gold Project assets into its consolidated feasibility study which is due for completion in the March quarter of 2020.
The Coolgardie project progress comes after Intermin completed its merger with MacPhersons Resources Ltd for which the company is also carrying out work for the consolidated study.
This will include grade control drilling at the Boorara project, which is planned for later this quarter.
Feasibility activities proposed for the Coolgardie project include infill, extensional and technical drilling, processing plant engineering studies, approvals work for mine development and additional metallurgical test work.
Coolgardie Gold Project locations and surrounding infrastructure.
The Coolgardie project covers 235 square kilometres of greenstone belt 45 kilometres west of Kalgoorlie-Boulder in WA.
Total measured, indicated and inferred resources are 27.314 million tonnes at 2.4 g/t for 2,127,500 ounces which includes a reserve of about 1.6 million tonnes grading 3.2 g/t for 171,000 ounces.
Through the proposed feasibility work, Intermin aims to update resources and reserves on the core development projects, including the high-grade Bonnie Vale underground discovery and the Brilliant open cut project.